Brazil Stocks Extend Selloff
Brazil's Ibovespa index edges lower, extending the previous session's 2.5% drop
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.