Ibovespa Slips as US-Iran Tensions Continue

The Ibovespa fell 1% to trade below 175,500 on Friday as investors assessed fresh US tariffs on Brazilian exports and escalating tensions in the Middle East. Markets continued to grapple with inflation concerns and expectations of higher global interest rates as oil prices remained elevated despite retreating from recent peaks. Financials posted losses, with Itaú, Bradesco, Itaúsa, and Banco do Brasil all down about 1%. Utilities also weakened, with Sabesp losing more than 1%. Petrobras fell over 1% as oil prices pulled back from recent highs.

The Ibovespa fell 0.5% to close at 176,724 on Thursday as escalating Middle East tensions weighed on sentiment. Oil prices surged after renewed attacks heightened concerns over global energy supplies, reigniting inflation fears and reinforcing expectations that interest rates could remain higher for longer. Financials led the losses, with Itaú down 0.8%, Bradesco shedding 1.3%, Itaúsa losing 0.6%, and Banco do Brasil retreating 0.8%. Utilities also traded lower, with Axia down 0.6% and Sabesp falling 1%. WEG slipped 2.3% after soaring 10% in the previous session on strong operating margins and return on invested capital. Other notable laggards included Ambev (-1.3%), Rede D'Or (-2.4%), and Embraer (-0.5%). In contrast, Petrobras gained 0.9%, supported by higher oil prices.

The Ibovespa shed about 0.5% to trade below 177,000 on Thursday on escalating Middle East tensions. Oil prices surged after renewed attacks heightened concerns over global energy supplies. Houthi rebels said they had struck two Saudi oil tankers as part of a naval blockade, adding to disruptions caused by Iran's near-total closure of the Strait of Hormuz. The spike in oil prices reignited inflation concerns, fueling expectations that interest rates could remain higher for longer. Financials traded lower, with Itaú, Bradesco, and Itaúsa retreating about 1%. Utilities also posted losses, with Axia down 1% and Sabesp losing more than 1.5%. WEG slipped about 0.5% after soaring 10% in the previous session on strong operating margins and return on invested capital. Other notable laggards included Ambev (-0.7%), Rede D'Or (-3%), and Embraer (-1%). In contrast, Petrobras gained 1.5% on higher oil prices.