FX.co ★ Ibovespa Dips as US-Iran Peace Hopes Fade

The Ibovespa fell nearly 1% on Wednesday, slipping below the 180,000 mark as waning expectations for a US–Iran peace deal weighed on risk appetite. The impasse in this week’s negotiations dimmed hopes for a reopening of the Strait of Hormuz, while persistent concerns over stagflation and rising bond yields continued to pressure banks and the broader equity market. The majority of stocks finished lower. In the banking sector, Bradesco and Banco do Brasil declined about 0.5%. Utilities also weakened, with Sabesp and Azzas losing more than 0.5%. Petrobras and WEG both retreated by close to 1%. Bucking the trend, Vale advanced nearly 1%, supported by higher iron ore prices. After the close, Banco do Brasil, CSN (+0.5%), and Eneva (-0.6%) are scheduled to release their earnings results.