Ibovespa Rises as Oil Prices Retreat

The Ibovespa edged up to trade above 174,500 on Monday as a pause in the Middle East conflict drove oil prices lower and eased inflation concerns. Crude prices fell after the US and Iran halted strikes over the weekend amid renewed diplomatic efforts, with President Donald Trump reportedly open to restarting peace talks. The pullback in oil prices supported financials, with Itaú and Bradesco each gaining nearly 1%. Utilities also advanced, led by Axia, up more than 2%, while Sabesp gained nearly 1%. WEG rose about 4% after Bradesco BBI upgraded the stock to Outperform and JPMorgan raised its rating to Overweight. The company also secured a contract to supply two generating units for Engie Brasil's Jaguara hydroelectric plant expansion. Embraer climbed more than 3% after reporting a record second-quarter backlog of $34.5 billion. In contrast, Petrobras fell nearly 3% as lower oil prices weighed on the stock.

The Ibovespa fell 1.5% to close at 174,042 on Friday as investors assessed fresh US tariffs on Brazilian exports and escalating tensions in the Middle East. Concerns among the Brazilian government and corporate sector intensified after the Trump administration announced another round of tariffs on Brazilian goods. Markets also continued to grapple with inflation concerns and expectations of higher global interest rates as oil prices remained elevated despite retreating from recent peaks. Major banks led the losses, with Banco do Brasil down 2.8%, Bradesco falling 1.3%, Itaú declining 1.1%, and Santander losing 1.1%. Petrobras dropped 1.7% as oil prices pulled back, while junior oil producer PRIO lost 2.8%. Vale fell 0.6% but still posted a weekly gain of more than 3%, supported by stronger-than-expected production figures released earlier in the week. Bucking the broader market, WEG rose 0.7% after its quarterly results, helped by positive commentary from Goldman Sachs and Itaú BBA.

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.