Ibovespa Falls as Banks Post Losses

The Ibovespa fell about 1.5% to hover near 204,000 on Wednesday amid an unfavorable external backdrop. Oil prices extended gains, fueling concerns over energy-driven inflation, while higher-than-expected US CPI inflation pressured lenders amid uncertainty over the Fed’s policy outlook. Major banks posted losses, with Itaú down more than 2%, Banco do Brasil shedding over 2.5%, and Bradesco falling nearly 4%. Other financial stocks also declined, with B3 losing more than 4% and Itaúsa shedding nearly 3%. Utilities retreated as well, with Sabesp down 2%. Miners extended their losses, with Vale falling more than 1% as Chinese iron ore prices continued to decline. In contrast, Petrobras rose around 1.5% as oil prices resumed their climb.