Ibovespa Falls as Banks Post Losses

The Ibovespa fell about 1.5% to hover near 204,000 on Wednesday amid an unfavorable external backdrop. Oil prices extended gains, fueling concerns over energy-driven inflation, while higher-than-expected US CPI inflation pressured lenders amid uncertainty over the Fed’s policy outlook. Major banks posted losses, with Itaú down more than 2%, Banco do Brasil shedding over 2.5%, and Bradesco falling nearly 4%. Other financial stocks also declined, with B3 losing more than 4% and Itaúsa shedding nearly 3%. Utilities retreated as well, with Sabesp down 2%. Miners extended their losses, with Vale falling more than 1% as Chinese iron ore prices continued to decline. In contrast, Petrobras rose around 1.5% as oil prices resumed their climb.

The Ibovespa fell 1% to close at 206,887 on Tuesday, weighed down by losses in major banks, utilities and mining stocks. The Focus survey raised its 2026 inflation forecast to 5.22% from 5.01%, marking a fourth consecutive increase, while the Selic benchmark rate remained unchanged at 13.25%. The IMF also cut its 2026 GDP growth forecast for Brazil to 2.2% from 2.4%, citing a slowdown expected in 2026–2027 due to restrictive interest rates aimed at bringing inflation back to target, the withdrawal of fiscal stimulus and global uncertainty. Major banks declined, with Itaú falling 1.6% and Bradesco losing 1%. Utilities also retreated, with Axia down 1.6% and Sabesp shedding 3.1%. Mining stocks weakened as ample global supply, high Chinese inventories and lower shipping costs continued to weigh on iron ore prices. Vale fell 1.1%. In contrast, Petrobras gained 1.5% as oil prices rebounded.

The Ibovespa fell over 0.5% to hover below 208,000 on Tuesday, weighed down by losses in major banks, utilities and mining stocks. The Focus survey raised its 2026 inflation forecast to 5.22% from 5.01%, marking a fourth consecutive increase, while the Selic benchmark rate remained unchanged at 13.25%. The IMF also lowered its growth projections for Brazil, cutting its 2026 GDP growth estimate to 2.2% from 2.4%. The fund attributed the slowdown expected between 2026 and 2027 to restrictive interest rates aimed at bringing inflation back to target, the withdrawal of fiscal stimulus and global uncertainty. Major banks declined, with Itaú down nearly 1.5% and Bradesco losing about 1%. Utilities also fell, with Sabesp down nearly 2%. Miners weakened as abundant global supply, elevated Chinese inventories and lower shipping costs continued to pressure iron ore prices. Vale shed nearly 1%.