Ibovespa Gains on Lower Oil Quotes

The Ibovespa rose 1% to trade above the 170,000 mark on Monday as lower oil prices supported risk appetite. Oil prices fell after US and Iranian officials concluded their first round of talks in Switzerland, easing concerns over energy-driven inflation pressures. Major banks led gains, with Itaú and Bradesco up nearly 2%, while Banco do Brasil gained 1%. Utility stocks also moved higher, with Axia and Sabesp adding around 1%. In contrast, Petrobras edged lower as oil prices declined. Meanwhile, the latest BCB Focus survey showed higher expectations for the Selic rate and inflation in 2026. Investors also assessed a new Datafolha survey showing President Lula leading in a hypothetical second-round presidential race.

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.