Ibovespa Falls on Commodity and Bank Losses

The Ibovespa fell 0.4% to close at 170,507 on Wednesday, pressured by losses in commodity and banking stocks. Petrobras was among the main drags, down 2.6% as oil prices declined on signs that more tankers were moving through the Strait of Hormuz amid progress in US-Iran talks. Vale lost 2.1% amid an internal dispute over its chairman position. Major banks also traded lower after Citigroup cut target prices for several Brazilian lenders, citing a more cautious stance on the sector due to a deteriorating macroeconomic backdrop and rising pressure on asset quality, particularly in consumer lending and agribusiness. Bradesco fell 1.1%, while Banco do Brasil dropped 0.6%. On the upside, WEG gained 2% as it accelerates the expansion of its Rugao unit in China. Embraer rose 1.5% amid renewed speculation over a sale of the C-390 Millennium to Morocco.

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.