The Ibovespa slipped 0.1% to close at 166,784 on Monday, extending its losing streak to ten consecutive sessions. Persistent tensions in the Middle East, with no clear prospect of a near-term resolution, continued to unsettle markets. Rising oil prices intensified inflationary pressures, weighing on financial stocks and the broader index. Among major banks, Itaú fell 1.6%, Bradesco dropped 1.9%, and Banco do Brasil declined 2.3%.
On the macroeconomic front, the IBC-Br activity index posted a 0.6% contraction, slightly worse than expected and the sharpest decline since May 2025, reinforcing signs of a slowing economy. In the corporate sphere, Casas Bahia plunged 33.3% after filing for judicial recovery in the wake of a multibillion-real loss in the second quarter of 2026.
In politics, a Quaest poll released late Friday indicated a technical tie between President Lula and Senator Flávio Bolsonaro in a potential second round of the October presidential election. A BTG/Nexus survey pointed to the same scenario. Earlier polls had shown Lula leading Flávio Bolsonaro, who is perceived as more fiscally conservative, in a hypothetical runoff.
