Ibovespa Muted Amid Renewed Middle East Tensions

The Ibovespa traded little changed near 172,500 on Tuesday on fresh geopolitical escalation between Iran and the US. Oil prices, which had retreated to near pre-conflict levels following the Iran-Israel ceasefire, edged higher after reports of new attacks on vessels in the Strait of Hormuz. The rebound supported Petrobras, which gained more than 0.5%, but also pushed bond yields higher on renewed inflation concerns, limiting gains for financials and the broader market. Major banks traded mixed, with Itaú edging up and Bradesco slightly lower. Separately, Itaúsa (+0.2%) said it could subscribe between R$730 million and R$1.5 billion in Aegea's proposed capital increase, aimed at strengthening its capital structure and accelerating deleveraging. Vale fell nearly 1% on lower iron ore prices.

The Ibovespa fell 0.9% to close at 172,447 on Monday as investors awaited a public hearing in Washington on the US trade investigation into Brazil, which could lead to additional tariffs on Brazilian exports. The hearing will consider a proposed 25% tariff after the USTR identified what it described as "unreasonable" trade practices. Exporters led the declines, with Vale down 1.3%, Petrobras losing 1.3%, and Minerva slipping 0.8%. Petrobras was also pressured by lower oil prices after OPEC+ agreed to raise output targets from August and shipping through the Strait of Hormuz continued to normalize. Elsewhere, Ambev dropped 2.5% on concerns that third-quarter sales in Latin America could miss expectations after Brazil and Mexico were eliminated from the FIFA World Cup.

The Ibovespa fell more than 0.5% to trade below the 173,000 mark on Monday as investors awaited a public hearing in Washington on the US trade investigation into Brazil for the possibility of additional tariffs on Brazilian products. The hearing will consider imposing a 25% tariff on Brazilian goods following an investigation into the country's trade practices. The USTR said it had identified what it described as "unreasonable" practices. Shares of major exporters declined, with Vale down 0.7%, Petrobras losing 1%, and Minerva slipping 0.6%. Petrobras was also pressured by lower oil prices after OPEC+ agreed to raise its production target starting in August and shipping through the Strait of Hormuz continued to normalize. Other notable decliners included Bradesco (-2.6%), Ambev (-2.6%), WEG (-1.0%), and Rede D'Or (-1.6%).