The Ibovespa fell nearly 1%, slipping below 179,000 on Friday, as investors digested a more hawkish tone from central banks amid rising tensions in the Middle East and warnings that the conflict could rekindle inflation. On Thursday, the BCB delivered a 25 basis point rate cut—half of the previously expected 50 basis points—and cautioned that war-related spikes in energy and commodity prices are pushing inflation forecasts away from the 3% target, leaving the path for interest rates uncertain.
Bank shares extended losses, with Itaú down more than 1% and Bradesco falling over 0.5%. Utilities also retreated, led by Sabesp, which dropped nearly 1.4%. Other notable decliners included Ambev, WEG, and Rede D'Or, each losing around 1%. In contrast, Petrobras advanced, continuing to benefit from higher oil prices amid the blockade in the Strait of Hormuz.
