Ibovespa Falls on Political and Inflation Concerns

The Ibovespa fell 0.9% to close at 185,814 on Wednesday following new election polls and a rebound in 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 rose amid uncertainty over diplomatic efforts to end the US-Iran war and reopen the Strait of Hormuz. Energy-driven inflation concerns persisted. In addition, Copom’s minutes from its latest meeting, released yesterday, were more hawkish than expected. Financials weighed on the index, with Itaú down 1.9%, Bradesco and Banco do Brasil both falling 2.2%, and Itaúsa shedding 1.9%. Utilities also traded lower, with Sabesp losing nearly 2.8%. Vale fell 1.8% amid weak profitability among Chinese steelmakers. Petrobras gained 2.6% on rising oil prices.