Ibovespa Rebounds From Seven-Month Low

The Ibovespa rose about 0.5% to trade above 168,000 on Thursday, rebounding from a seven-month low amid a fresh batch of earnings reports and falling oil prices. Rede D’Or added 5% after reporting a 9.7% year-on-year increase in net profit. CSN gained 2% despite reporting a net loss, as the loss was smaller than expected and revenue grew 6%. Meanwhile, Banco do Brasil shed 0.5% after reporting below-expectation profits in the second quarter. Sabesp tumbled over 2.5% after reporting an 11.2% year-on-year drop in net profit. Crude prices pulled back as signs of weaker demand offset the stalemate in peace negotiations involving Iran. Easing inflationary pressures in the US, following tame PPI data, supported financials and other credit-sensitive shares. Major banks were mostly higher, with Bradesco adding 0.5%, while utilities also gained, with Axia rising 1%.

The Ibovespa shed 0.2% to close at 167,491 on Wednesday, extending the previous session’s 2.5% drop that pushed the index to a seven-month low. Uncertainty over the return of energy supplies from the Middle East maintained inflationary concerns. Financials were mostly lower, with Itaú losing 1.5%. B3 fell 0.3% after reporting a 15.5% year-on-year increase in expenses. Banco do Brasil added 0.8% ahead of its earnings report due after the bell. Vale shed 1.6% as iron ore prices declined, while CSN rose 0.9% ahead of its earnings. Petrobras fell 0.5% as oil prices turned lower. Rede D’Or (-2%) and Sabesp (+0.5%) are scheduled to release results after the close. JPMorgan downgraded Brazilian equities to neutral within Latin America on Tuesday, citing weaker growth, deteriorating credit conditions, higher-for-longer rates, and increased volatility ahead of the presidential election. The bank also lowered its year-end Ibovespa target.

The Ibovespa edged lower to trade below 168,000 on Wednesday, extending the previous session’s 2.5% drop that pushed the index to a seven-month low. Crude oil remained volatile amid conflicting signals over a potential US-Iran agreement, keeping inflation concerns elevated. Most financial stocks traded near the flatline, while B3 fell nearly 1% after reporting a 15.5% year-on-year increase in expenses on Tuesday. Banco do Brasil (-0.3%), Rede D’Or (-0.5%), CSN (+1.5%) and Sabesp (-0.3%) are among the scheduled to release their second-quarter 2026 results after the market close. Vale shed more than 1% as iron ore prices declined, while steelmakers posted gains. Petrobras fell 1% as oil prices turned lower. JPMorgan downgraded Brazilian equities to neutral within Latin America on Tuesday, citing weaker growth, deteriorating credit conditions, higher-for-longer interest rates and increased volatility ahead of the presidential election. The bank also lowered its year-end Ibovespa target.