Ibovespa Edges Up as Oil Drops on Peace Hopes

The Ibovespa rose 0.5% to close at 187,691 on Wednesday, as reports of a potential US–Iran agreement to end the Middle East conflict supported sentiment, with a Pakistani mediator indicating both sides are close to a memorandum and President Donald Trump saying compliance by Iran could end the war and reopen the Strait of Hormuz. Oil prices plunged on expectations of resumed supply, easing inflation concerns. Most banks advanced, with Bradesco and Banco do Brasil both up 0.7%. Vale jumped 3.6%, supported by higher iron ore prices as trading resumed in China after the May Day holiday. Elsewhere, Minerva (-2.2%) is set to report results. Oil stocks declined sharply, tracking lower crude prices, with PRIO (-4.3%) leading losses, followed by Petrobras (-2.9%), despite PRIO reporting results above estimates. On the data front, Brazil’s services PMI rose to 52.3 in April from 50.1.

The S&P/TSX Composite Index rose 1.2% to close at 33,982 on Wednesday, as hopes for a US–Iran peace deal boosted sentiment, with reports suggesting both sides are nearing a memorandum to end the Gulf conflict. Oil prices plunged on expectations that Middle East supply could resume, easing inflation concerns and supporting banks, with Royal Bank of Canada (+1.9%) and TD Bank (+2.7%) higher. Gold prices rose, aided by a weaker dollar and lower crude, lifting miners, as Agnico Eagle (+6.6%), Barrick (+7.6%), and Wheaton Precious Metals (+7.5%) surged. On the earnings front, Suncor Energy and Cenovus Energy both beat expectations, the latter reporting an 83% profit jump, but shares fell 7.5% and 4.9%, respectively, amid declining oil prices. Elsewhere, Loblaw (-5.4%) posted weaker-than-expected revenue, while Sun Life Financial (+0.1%) and Great-West Lifeco (+0.8%) are set to report later in the day. On the data front, the Ivey PMI rose to 57.7 in April from 49.7 in March.

The S&P/TSX Composite rose on Wednesday on hopes that a peace deal between the US and Iran could be reached soon, with reports suggesting both sides are close to a memorandum to end the Gulf conflict. Oil prices plunged on expectations that Middle East supply could resume, easing inflation concerns and supporting banks, with Royal Bank of Canada up over 1% and TD Bank adding +1.5%. Gold prices rose, aided by a weaker dollar and lower crude, lifting miners, as Agnico Eagle and Barrick surged around 5% and Wheaton Precious Metals advanced near 6.0%. On the earnings front, Suncor Energy and Cenovus Energy both beat expectations, the latter reporting an 83% profit jump. Still, shares of both fell about 4% amid declining oil prices. Elsewhere, Loblaw (-3.6%) posted slightly weaker-than-expected revenue, while Sun Life Financial (+1.0%) and Great-West Lifeco (+0.1%) are set to report later in the day. On the data front, the Ivey PMI rose to 57.7 in April from 49.7 in March.