The Ibovespa inched above 196,000 on Monday, supported by gains in energy and utilities. The energy sector advanced on the back of a sharp rebound in oil prices, following renewed geopolitical tensions after the US seized an Iranian cargo ship and Iran reasserted control over the Strait of Hormuz.
In utilities, Axia climbed more than 1.5%, while Sabesp rose over 2%. In contrast, major banks retreated as the jump in oil prices reignited stagflation concerns, worsening the outlook for the sector amid high interest rates and subdued credit demand. Bradesco fell close to 1%, and Itaú slipped 0.4%.
Vale also declined more than 1%, pressured by rising freight costs linked to higher energy prices.
