Ibovespa Wavers Amid Political Risks and Oil Rebound
The Ibovespa moved between gains and losses close to the 188,000 mark on Wednesday following new election polls and amid volatile oil prices. An AtlasIntel poll for October’s presidential election showed President Lula regaining a numerical lead over Senator Flávio Bolsonaro in a potential second-round runoff, although the candidates remain in a statistical tie. Oil prices moved higher, paring earlier losses amid uncertainty over diplomatic efforts to end the US-Iran war and reopen the Strait of Hormuz. Energy-driven inflation concerns persisted despite the slowdown in the oil rally in recent weeks. In addition, Copom’s minutes from its latest meeting, released yesterday, were more hawkish than expected. Financials weighed on the index, with Itaú, Bradesco, and Itaúsa down over 0.5% each, while B3 shed nearly 2%. Utilities also traded lower, with Axia and Sabesp losing nearly 1%. Vale fell nearly 1% amid weak profitability among Chinese steelmakers. Petrobras gained nearly 2%.
The Ibovespa moved between gains and losses close to the 188,000 mark on Wednesday following new election polls and amid volatile oil prices. An AtlasIntel poll for October’s presidential election showed President Lula regaining a numerical lead over Senator Flávio Bolsonaro in a potential second-round runoff, although the candidates remain in a statistical tie. Oil prices moved higher, paring earlier losses amid uncertainty over diplomatic efforts to end the US-Iran war and reopen the Strait of Hormuz. Energy-driven inflation concerns persisted despite the slowdown in the oil rally in recent weeks.
In addition, Copom’s minutes from its latest meeting, released yesterday, were more hawkish than expected. 5% each, while B3 shed nearly 2%. Utilities also traded lower, with Axia and Sabesp losing nearly 1%. Vale fell nearly 1% amid weak profitability among Chinese steelmakers.
Petrobras gained nearly 2%.