Ibovespa Gains on Cooling US Inflation

The Ibovespa gained more than 0.5% to trade near 177,000 on Tuesday, recovering from the previous session's losses after softer-than-expected US inflation data. US consumer prices declined in June for the first time in six years, while core inflation was little changed, easing pressure on the Federal Reserve to raise interest rates. Financials traded higher, with Itaú, Bradesco, and Itaúsa up nearly 1%. Utilities also posted gains, with Axia and Sabesp adding 0.5%. Meanwhile, Vale jumped more than 2% as iron ore prices surged on expectations that impending Chinese restrictions on selected Fortescue portside cargoes will tighten supply. Other notable gainers included Ambev (+1%), Rede D'Or (+1%), and Vivo (+1.5%).

The Ibovespa lost 1.2% to close at 175,739 on Monday following military exchanges between the US and Iran. US and Iranian forces exchanged heavy missile and drone attacks over the weekend and into Monday, pushing oil prices higher on renewed concerns over crude shipments through the Strait of Hormuz. Energy-driven inflation concerns reinforced expectations that interest rates will remain higher for longer. Financials traded lower, with Itaú losing 1.8%, Itaúsa down 2.5%, and Banco do Brasil shedding 1.6%. Utilities also posted losses, with Axia down 3% and Sabesp retreating 2.4%. Vale fell 1.8% on lower iron ore prices. Other notable laggards included WEG (-4.6%), Rede D'Or (-1.3%), and Embraer (-1.9%). In contrast, Petrobras advanced 2.5% on higher oil prices. Meanwhile, the Focus survey showed lower inflation forecasts for 2026.

The Ibovespa edged lower to trade near the 177,000 mark on Monday after military exchanges between the US and Iran. US and Iranian forces exchanged heavy missile and drone attacks over the weekend and into Monday, pushing oil prices higher on renewed concerns over crude shipments through the Strait of Hormuz. Energy-driven inflation concerns reinforced expectations that interest rates will remain higher for longer. Meanwhile, the Focus survey showed lower inflation forecasts for 2026. Financials traded mixed, with Bradesco gaining 0.5% and Itaú trading near flat, while Itaúsa and Banco do Brasil edged lower. Utilities posted losses, with Axia edging down and Sabesp losing nearly 1%. Vale fell nearly 1% on lower iron ore prices. Other notable laggards included WEG (-2%), Rede D'Or (-1%), and Embraer (-1%). In contrast, Petrobras advanced more than 2% on higher oil prices.