Ibovespa Slips as Petrobras And Vale Weigh

The Ibovespa edged lower to trade near the 170,500 mark on Wednesday, as markets adjusted after the global tech-led selloff in the previous session. Shares of Petrobras fell more than 1.5% as oil prices extended this week’s losses on signs that more tankers are set to leave the Strait of Hormuz. Vale lost nearly 1% amid an internal dispute over its chairman position. Meanwhile, major banks traded higher as interest-rate futures moved lower, with Itaú, Bradesco, and Banco do Brasil gaining more than 0.5%. Geopolitical uncertainty remained elevated as the US and Iran gave conflicting accounts of the terms agreed under their peace deal, including nuclear inspections and control over the Strait of Hormuz.

The Ibovespa rose 0.5% to close at 171,259 on Tuesday after opening lower, diverging from the sharp selloff on Wall Street as markets digested the latest Copom minutes. According to Banco Central do Brasil, policymakers are considering both a pause and a resumption of Selic cuts as possible paths to bring inflation back to target. In the document, the central bank acknowledged that upside risks to inflation currently outweigh downside risks while leaving the next policy steps open and data-dependent. Banking stocks posted gains, with Bradesco up 0.9% and Banco do Brasil rising 1.4%. Utilities also moved higher, with Axia gaining 2.6% after news it is preparing a debenture issuance of up to R$1 billion, maturing in 2036. Other notable gainers included Ambev (+1.2%) and WEG (+1%). In contrast, Vale fell 1.9% after its board unanimously approved a shareholders’ meeting on July 22 to vote on the removal of chairman Daniel Stieler, following a request from its largest shareholder, Previ.

The Ibovespa edged lower to trade below the 170,000 mark on Tuesday, tracking a broader risk-off mood as a selloff in technology stocks weighed on global markets. Losses were broad-based, led by Vale, which fell 2.2%. Vale’s board unanimously approved the call for a shareholders’ meeting on July 22 to vote on the removal of its chairman, Daniel Stieler, following a request from the miner’s largest shareholder, Previ, triggering an internal dispute over the position. Utility stocks also moved lower, with Axia and Sabesp down around 1%. Major banks declined after minutes from the latest Banco Central do Brasil meeting showed policymakers see Selic paths closer to market expectations as more appropriate. On Monday, the BCB’s Focus survey showed the year-end Selic forecast rising from 13.75% to 14.00%. Bradesco and Itaú both lost more than 0.5%. Other notable laggards included Petrobras (-0.6%), WEG (-1%), and Embraer (-1%).