The Ibovespa fell more than 0.5% to below 169,500 on Friday, pressured by rising global bond yields and escalating tensions in the Middle East. Iran-backed Hezbollah rejected a new ceasefire proposal for Lebanon, while Israel reiterated it would not withdraw its troops, undermining US diplomatic efforts involving Iran. Oil prices remained elevated, stoking fresh inflation concerns, and a stronger-than-expected US jobs report reinforced expectations of a Federal Reserve rate hike, amplifying the move higher in Brazilian interest-rate futures.
UBS also turned more cautious on Brazilian assets as the likelihood of aggressive Selic cuts diminished, citing stronger domestic economic activity, higher oil prices linked to the Iran conflict, and persistent inflationary pressures. On the corporate front, B3 slipped further after a 5% decline in the previous session, while Itaú and Bradesco were little changed. Utilities underperformed, with Auren down nearly 1% and Sabesp losing more than 1%. Vale also dragged on the index, dropping almost 2% amid weaker iron ore prices.
