Ibovespa Closes Near Flat as US-Iran Talks Stall

The Ibovespa was virtually unchanged at 168,334 on Friday in a session marked by lighter global liquidity, as investors monitored developments in the Middle East. Peace talks between the US and Iran were postponed. The discussions, scheduled to take place in Switzerland and aimed at addressing Iran’s nuclear program following a recently signed memorandum of understanding, were delayed, adding fresh uncertainty over the timeline of negotiations seen as key to reopening the Strait of Hormuz and normalizing oil flows. Oil prices rebounded modestly, reviving concerns over energy-driven inflation. Bond yields moved higher in response, renewing concerns over borrowing costs. Heavyweight banks traded lower, with Itaú down 1.5% and Bradesco falling 0.7%. Meanwhile, utilities advanced, with Axia up 0.6%. Vale also gained 1% as iron ore prices held firm.

The Ibovespa was little changed near the 168,000 mark on Friday as investors reacted to the suspension of US-Iran talks. The discussions, aimed at addressing Iran’s nuclear program following a recently signed memorandum of understanding, were delayed. Meanwhile, Iranian authorities overseeing the Strait of Hormuz said transit fees would be waived during a 60-day negotiation period under the agreement signed with the US earlier this week. Investors also monitored the release of a new presidential poll. Banking stocks traded mixed, with Santander Brasil edging higher after Santander became Spain’s most valuable listed company for the first time in eight years. Meanwhile, Itaú lost more than 0.5%, while Bradesco edged up. Petrobras slipped as oil prices remained near their lowest levels since the start of the US-Iran conflict, while Vale also edged lower on weaker iron ore prices.

The Ibovespa edged down 0.1% to close at 168,277 on Thursday as investors assessed the monetary policy outlooks from Brazil’s central bank and the US Federal Reserve, alongside the signing of an interim peace deal between the US and Iran. Brazil’s central bank cut the Selic rate by 0.25 percentage point to 14.25% but signaled a longer timeline to bring inflation back to target, leaving its next steps open as it evaluates alternative interest rate paths. The US Federal Reserve, meanwhile, kept its benchmark rate unchanged and maintained a hawkish outlook. Banking stocks traded mixed, with Banco Bradesco down 0.5% and Itaú losing 0.8%, while Banco do Brasil rose 0.6% and Caixa Econômica gained 1.7%. Utilities were also mixed, with Axia down 1.7% and Sabesp losing 2%, while CPFL gained 1.3% and Copel advanced 3.4%. Meanwhile, WEG jumped 4.6% as investors positioned ahead of a key corporate payout deadline.