The Ibovespa fluctuated throughout Tuesday’s session before closing with a modest gain of 0.1% at 188,259 points, as investors tracked mounting tensions in the Middle East. Iran rejected a US ceasefire proposal ahead of a deadline set by President Trump, who warned of severe consequences if no agreement is reached. Crude oil prices hovered near their highest levels since 2022, intensifying concerns about stagflation.
Banking shares came under heavy pressure, with Banco Bradesco falling more than 1% and Banco do Brasil also retreating as longer-term interest rate futures moved higher. Suzano tumbled over 6% after failing to meet a decarbonization target tied to its sustainability-linked bonds, triggering an increase in its funding costs. Real estate developers such as MRV and Cyrela also recorded steep losses of more than 5% in response to the rising yield environment.
In contrast, Petrobras and Vale benefited from firmer commodity prices, while some utilities and consumer-oriented names, including Raia Drogasil, managed to close in positive territory.
