FX.co ★ Brazil Shares Fall Ahead of BCB Decision

The Ibovespa fell 0.4% on Tuesday, closing at 169,648, as investors digested new election polling and mounting inflation expectations. A BTG/Nexus survey released Monday showed President Lula maintaining a nine-point lead over Senator Flávio Bolsonaro in first-round voting intentions. At the same time, the median forecast for Brazil’s annual inflation rose for the 14th consecutive week, prompting markets to reconsider how long the BCB may keep interest rates at elevated levels. Most sectors finished in negative territory. Financial stocks were mixed amid fears that higher borrowing costs could suppress lending activity, with Bradesco slipping 0.7%. Petrobras also weighed on the index, losing 1.3% as renewed optimism over a preliminary US–Iran peace agreement strengthened expectations that the Strait of Hormuz will remain open.