Ibovespa Falls for Eleventh Straight Session

The Ibovespa fell 0.2% to close at 166,334 on Tuesday, erasing earlier gains to end its eleventh consecutive session of losses amid elevated global bond yields and uncertainty surrounding the Middle East conflict. Global bond yields traded near multi-decade highs, as fading hopes for a peace deal between the US and Iran and rising energy costs rekindled inflation concerns. Major banks closed lower, with Itaú shedding 0.5%, Bradesco losing 0.6% and Banco do Brasil retreating 0.8%. Utilities also posted losses, with Axia down 0.6% after gaining earlier in the session on the results of its share buyback operation and a buy recommendation from Itaú BBA. Steelmakers posted losses despite higher iron ore prices, with Gerdau down 2.3% and CSN losing 0.7%, while Vale edged 0.2% higher. Petrobras gained 0.3% on higher oil prices. WEG (+1%), Embraer (+0.8%) and Suzano (+1.4%) outperformed.

The Ibovespa rose over 0.5% to trade close to 168,000 on Tuesday, supported by heavyweight stocks. Petrobras rose nearly 1% as oil prices climbed after US President Donald Trump said he was not interested in extending the interim peace deal with Iran. Axia (+0.5%) announced the results of its second Class C preferred share buyback operation, totaling approximately R$2 billion. Itaú BBA reiterated its buy recommendation for the stock. Rede D’Or added about 1%, while WEG gained 0.5%. Major banks traded below the flatline, pressured by rising global bond yields as energy-driven inflation concerns persisted. Meanwhile, Casas Bahia (-7%) is seeking a R$1 billion loan and betting on its marketplace after filing for judicial recovery. The company’s shares were halted several times during Monday’s session amid sharp volatility and closed down 33%.

The Ibovespa edged 0.1% lower to close at 166,784 on Monday, marking a tenth consecutive session of losses. Tensions in the Middle East persisted, with little sign of a near-term resolution. Inflationary pressures increased amid higher oil prices, weighing on financials and the broader index. Itaú shed 1.6%, Bradesco lost 1.9% and Banco do Brasil retreated 2.3%. The IBC-Br showed a slightly larger-than-expected decline, falling 0.6%, its biggest drop since May 2025. The data added to evidence of a slowing economy. Casas Bahia (-33.3%) filed for judicial recovery following a multibillion-real loss in 2Q26. Meanwhile, a Quaest poll released late Friday showed President Lula and Senator Flávio Bolsonaro in a technical tie in a potential second round of the October presidential election. The same scenario was indicated by the BTG/Nexus poll. Previous polls had shown Lula ahead of Flávio Bolsonaro, who is seen as more fiscally strict, in a potential second round.