Ibovespa Falls Amid External Pressures
The Ibovespa fell 1% to close at 183,966 on Thursday, posting broad-based losses after a volatile session amid an unfavorable external environment. US Treasury yields soared to multi-decade highs as expectations of another Fed hike this year increased, while energy-driven inflation concerns persisted. Crude oil and global yields were volatile late in the session, with an upward trend. The BCB’s monetary policy report said the recent oil price shock has not yet generated significant inflationary pass-through through indirect effects on the Brazilian economy, despite direct impacts on prices. The BCB also cut its 2026 GDP growth forecast. Meanwhile, the federal government reduced the amount blocked in the 2026 budget despite concerns over elevated government spending. Financials closed lower, with BB down 2.8%, utilities also fell, with Axia losing 1.6%. Vale fell 1.1% as higher freight costs pressured Brazil’s iron ore exports to Asia. Petrobras lost 0.7% despite higher oil prices.
The Ibovespa fell 1% to close at 183,966 on Thursday, posting broad-based losses after a volatile session amid an unfavorable external environment. US Treasury yields soared to multi-decade highs as expectations of another Fed hike this year increased, while energy-driven inflation concerns persisted. Crude oil and global yields were volatile late in the session, with an upward trend. The BCB’s monetary policy report said the recent oil price shock has not yet generated significant inflationary pass-through through indirect effects on the Brazilian economy, despite direct impacts on prices.
The BCB also cut its 2026 GDP growth forecast. Meanwhile, the federal government reduced the amount blocked in the 2026 budget despite concerns over elevated government spending. 6%. 1% as higher freight costs pressured Brazil’s iron ore exports to Asia.
7% despite higher oil prices.