Ibovespa Falls on Banking and Vale Losses

The Ibovespa fell 0.2% to close at 168,669 on Monday, pressured by losses in Vale and major banks in a session marked by low trading volumes. Investors remained cautious as they awaited fresh catalysts after the benchmark retreated sharply from its record highs reached in April. Vale lost 0.8%, tracking lower iron ore futures in China. Financial stocks were mostly weaker, with Bradesco down 1.6%, Itaú falling 0.8%, and Banco do Brasil losing 0.4%. Petrobras rose about 0.8%, supported by higher oil prices, although crude pared earlier gains after Iran and Israel signaled they had halted attacks on each other following an appeal from US President Donald Trump. WEG jumped 3.6% after HSBC initiated coverage with a buy rating. Elsewhere, Embraer gained 1.5% on expectations of progress in an Indian military aircraft tender, while MRV dropped 4.6% and Marfrig fell 1.5%.

The Ibovespa traded gains and losses near the 168,500 mark on Monday as oil prices retreated from earlier highs. The rally in crude eased after signals that weekend strikes between Iran and Israel were unlikely to trigger a broader escalation of the conflict. Banks supported the index, with Itaú up 0.5% and Bradesco gaining 0.3%. WEG jumped 3% despite concerns over US tariffs after BTG Pactual reiterated its buy recommendation on the stock. Petrobras also advanced nearly 1%, tracking the softer increase in crude oil prices. In contrast, Vale fell about 1% amid lower iron ore prices. Elsewhere, meatpackers came under pressure after the European Union removed Brazil from the list of countries authorized to export certain animal products, citing concerns over controls on antimicrobial use in livestock. Minerva and JBS lost more than 2%, while Marfrig declined nearly 3%.

The Ibovespa fell 0.8% to close at 169,019 on Friday as higher bond yields, fading expectations of monetary easing, and escalating hostilities in the Middle East weighed on sentiment. Iran-backed Hezbollah rejected a new Lebanon ceasefire proposal, while Israel said it would not withdraw its troops, undermining US diplomatic efforts with Iran. Meanwhile, stronger-than-expected US payrolls data pushed Treasury yields higher and reinforced expectations that the Federal Reserve may keep interest rates elevated for longer, magnifying gains in Brazilian rate futures. UBS also turned less constructive on Brazilian assets as prospects for aggressive Selic cuts faded, citing stronger domestic activity, higher oil prices linked to the Iran conflict, and persistent inflation pressures. Banco do Brasil fell 1.8%, while B3 lost 0.7%. Vale dropped 3.8% amid lower iron ore prices, and Petrobras declined 0.9%, tracking a pullback in international oil prices.