Brazil Equities Rise on Oil Pullback

The Ibovespa gained 0.7% to close at 169,813 on Tuesday as lower oil prices eased inflation concerns and pushed bond yields lower, supporting financial stocks and the broader market. Itaú climbed 1.8%, Bradesco added 1.2%, and Itaúsa gained 1.3%. Utilities also advanced, with Sabesp rising 1.7%. Other notable performers included Ambev (+0.8%) and Rede D'Or (+1.9%). On the downside, WEG lost 1.5% after reporting first-quarter 2026 results that fell short of expectations, with net profit down 5.7% from a year earlier.

The Ibovespa gained nearly 1% to trade close to the 170,000 mark on Tuesday amid the possibility that a temporary ceasefire between Iran and Israel could pave the way for broader US-Iran negotiations. Lower oil prices and declining bond yields eased inflation concerns, supporting financial stocks and the broader market. Itaú climbed nearly 2%, while Bradesco and Santander gained more than 1%. Utilities also advanced, with Axia up over 1% and Sabesp adding nearly 2%. Other notable performers included Ambev (+1%), Rede D'Or (+1%), and Telefônica Brasil (+1%). On the downside, Petrobras shed nearly 0.5% as crude prices retreated, while WEG lost more than 1% after reporting first-quarter 2026 results that missed expectations, with net profit down 5.7% from a year earlier.

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%.