Ibovespa Posts Losses After Fiscal Figures

The Ibovespa fell more than 1% to trade below 171,000 on Tuesday as investors reduced risk at the end of the first half and assessed fiscal data. Brazil’s gross public debt rose above forecasts in May, while the consolidated public sector posted a wider-than-expected primary deficit. Gross debt reached 81.1% of GDP, above market expectations of 80.7%, while the primary deficit totaled R$56.1 billion, exceeding forecasts of a R$53.5 billion shortfall. The deterioration in fiscal accounts reinforced concerns over higher borrowing costs and persistent pressure on interest rates. Losses were broad-based across the index, with financial stocks among the main drags. Itaú and Bradesco both fell more than 1%. Utilities also traded lower, with Axia down 1.5%. Other notable laggards included Ambev (-1%), WEG (-1%), and Rede D'Or (-2%). Vale and Petrobras posted milder losses, supported by firmer iron ore and slightly higher oil prices.

The Ibovespa closed little changed at 173,205 on Monday as developments in the Middle East remained in focus. The US and Iran agreed to suspend recent hostilities and resume diplomatic talks after exchanging fresh attacks over the weekend. Oil prices rebounded but remained near pre-conflict levels, limiting concerns over renewed energy-driven inflation. Financial stocks led gains, with Itaú rising 0.4% and Bradesco adding 1.4%. Petrobras edged up 0.2% alongside the modest recovery in oil prices, while Vale slipped amid lower iron ore prices. Meanwhile, Ambev (-0.8%), Vivo (-1.1%), and Embraer (-2.1%) underperformed.

The Ibovespa traded little changed around the 173,300 level on Monday, with the situation in the Middle East continuing to dominate the headlines. The US and Iran agreed to suspend recent hostilities and resume diplomatic talks after both countries exchanged fresh attacks over the weekend before agreeing to halt hostilities and meet in Doha on Tuesday. Oil prices edged higher but remained near pre-conflict levels, limiting concerns over renewed energy-driven inflation. Financial stocks led gains, with Itaú Unibanco slightly higher and Bradesco up more than 0.5%. Petrobras gained nearly 0.5% on the modest rebound in oil prices, while Vale edged higher despite weaker iron ore prices. Other notable gainers included Ambev (+0.5%) and Ultrapar (+3%). Ultrapar outperformed after abandoning its acquisition process for Rumo, a decision viewed positively as it avoids a deal that could have increased leverage and pressured dividend payouts. On the downside, WEG fell nearly 1%.