Ibovespa Inches Lower Ahead of Copom Decision

The Ibovespa edged down 0.1% to close at 177,895 on Tuesday, pressured by losses in financial and energy stocks. Petrobras fell 1.3% as crude oil prices declined on optimism that the US and Iran could reach an agreement to reopen the Strait of Hormuz. Financials weakened ahead of Wednesday's Copom interest rate decision, with Itaú down 2.5%, Bradesco losing 1.8%, and Itaúsa retreating 1.7%. In contrast, BB Seguridade rose 1.7% after reporting in-line 2Q26 results. Investors also awaited Itaú's earnings, due later in the day. Telecom stocks underperformed, with Vivo down 2% and TIM falling 2.3%. Meanwhile, Vale gained 2.2% as iron ore prices edged higher, while Gerdau rose 3.1% ahead of its earnings. RD Saúde (+3%) and Prio (-0.1%) are also set to report results later today. WEG (+2%) and Sabesp (+1.6%) were among the other gainers.

The Ibovespa gained nearly 1% to trade above the 179,000 mark on Tuesday, supported by lower oil prices and growing expectations of a Selic rate cut. Crude prices fell after US President Donald Trump canceled planned strikes on Iran to revive negotiations, easing concerns about energy-driven inflation. The favorable backdrop reinforced expectations that the BCB will lower its benchmark rate from 14.25% on Wednesday. Financial stocks led gains, with Itaúsa rising about 1% and B3 advancing more than 2%. BB Seguridade added over 1% after reporting a 3.2% annual increase in net profit. Vale jumped about 2.5% as iron ore prices strengthened, while utilities also advanced, with Auren and Sabesp gaining around 1.5% each. Ambev and WEG rose about 1%, while Petrobras fell 1% in line with lower oil prices. Investors also awaited earnings from Itaú, Gerdau, RD Saúde, and Prio after the close.

The Ibovespa closed flat at 178,000 on Monday as losses in heavyweight commodity stocks offset optimism over easing Middle East tensions. Iran signaled progress in negotiations to restore shipping through the Strait of Hormuz after US President Donald Trump called off a planned strike on the country. The prospect of a diplomatic solution pushed oil prices lower, easing inflation concerns and driving bond yields down. The favorable backdrop reinforced expectations that the BCB will cut the Selic rate this week from the current 14.25%. Financials advanced, with Itaú and Bradesco rising 0.6%, while utilities also gained, with Axia up 1.4%. Also, Embraer climbed 3.1% after BNDES approved R$3.3-3.7 billion in financing to support exports of up to 19 aircraft to Canada's Porter Aviation Holdings. However, Petrobras (-0.8%) and Vale (-2.1%) weighed on the index as oil and iron ore prices declined.