FX.co ★ Ibovespa Drops Amid Risk-Off Market

The Ibovespa index dropped by 1% to end at 161,975 on Wednesday, retracing after hitting record highs in the previous session. This decline occurred against a backdrop of heightened geopolitical uncertainty following signals from Washington indicating stricter oversight over Venezuela's oil sector. President Donald Trump announced the nation's intentions to supply millions of barrels of crude oil to the US, stirring cautious sentiment in the market. Petrobras saw little movement amidst the ambiguity in Venezuelan oil supplies, whereas Vale experienced a 0.9% rise due to stronger iron ore prices. The banking sector underperformed, with Itaú, Bradesco, and Banco do Brasil seeing declines of 1.6%, 1.6%, and 1.5% respectively. Utilities shares also weakened, notably Axia, which dropped 4.1%. Other companies facing setbacks included WEG (-1.2%), Ambev (-0.3%), and Rede D’Or (-3.3%). Conversely, Embraer climbed by 0.8%, propelled by aircraft deliveries surpassing Itaú BBA's predictions, delivering 85 jets compared to the expected 80.