FX.co ★ Ibovespa Retreats from Record High

The Ibovespa index experienced a decline of nearly 1%, dropping below the 138,500 mark on Friday. This downturn marks a retreat from its recent record highs, driven by a combination of corporate developments and macroeconomic apprehensions that influenced market sentiment. Shares of Banco do Brasil fell sharply by approximately 12%, following first-quarter 2025 net income results that missed expectations by about 20%, alongside a decline in return on equity (ROE) to its lowest point since late 2021. This financial strain was exacerbated by mixed earnings reports from other leading banks and retailers, which contributed to the pressures within the financial sector. Brazil's meatpacking industry faced challenges as well, following a 60-day suspension on Brazilian chicken imports by China due to the nation's first bird-flu outbreak at a commercial farm. This development negatively impacted companies like BRF and JBS, although Marfrig saw a significant increase in shares by over 20% owing to merger synergies. In the mining sector, companies like Vale faced setbacks, under pressure from declining iron-ore prices and renewed concerns about China's economic growth outlook. Concurrently, investor concerns regarding Brazil's fiscal path intensified amidst speculation of potential popularity-driven measures emerging from Brasília. Nevertheless, the Ibovespa was still on track to achieve a weekly increase exceeding 1%.