Ibovespa Muted as Earnings Take Focus

The Ibovespa was little changed near 173,000 on Monday amid another batch of corporate earnings reports. Embraer gained nearly 7% after reporting adjusted net income of R$1.11 billion in 2Q26, up from R$890.3 million a year earlier. Itaúsa edged higher ahead of its results, due after the close, Caixa Seguridade (-0.5%), Natura (-0.1%), and JBS (-0.5%) are also scheduled to report. BTG Pactual and B3 are due to release results tomorrow. Meanwhile, oil prices rose amid unresolved Middle East tensions, lifting Petrobras by over 1%. Financials were mixed, with Itaú and Banco do Brasil gaining while Bradesco and BB Seguridade edged lower. The Focus Bulletin showed the 2026 inflation forecast easing slightly to 5.02% from 5.03%, while the year-end Selic forecast remained at 13.75% after being cut from 14.0% the previous week.

The Ibovespa fell 1.7% to close at 177,513 on Friday amid another batch of second-quarter 2026 earnings reports. Petrobras shed 3%, erasing earlier gains despite delivering one of its strongest earnings reports in recent quarters and beating expectations, as much of the strong performance had already been priced in and uncertainty remained over its sustainability. Localiza also fell 0.8% despite reporting R$1 billion in net profit, up 30.6% from a year earlier. Magazine Luiza dropped 3.7% following weak results and concerns over profitability, while Renner plunged 8.1% after cutting its guidance amid concerns about sales. Elsewhere, Vale fell 0.6% despite higher iron ore prices. Banks also declined broadly, led by Bradesco, down 2.2%, and Itaú Unibanco, which fell 2.6% ahead of the release of the Copom minutes on Tuesday, which are expected to provide further insight into the monetary authority's outlook for the Selic rate.

The Ibovespa edged lower to hover near 175,000 on Friday amid another batch of 2Q26 earnings reports. Localiza edged lower despite reporting R$1 billion in net profit, up 30.6% from a year earlier. Renner slumped 10% after cutting its 2026 net revenue guidance as sales slowed sharply during the World Cup period. Magazine Luiza also fell nearly 5% after reporting a net loss in 2Q26 almost three times larger than in 2Q25. BB Seguridade dropped 6% after its dividend cutoff date passed on Thursday, with shares now trading ex-dividend. Bradesco BBI said the company is likely to continue facing a challenging environment after its pension business disappointed, reflecting weaker financial results. In contrast, Petrobras gained over 0.5% after beating expectations, as supply disruptions linked to the US-Iran conflict lifted second-quarter prices for crude, gasoline, and diesel. Its EBITDA rose 80% year-on-year.