The Ibovespa fell more than 0.5% on Wednesday, slipping below 195,500 points, amid uncertainty over a possible US-backed extension of the ceasefire with Iran. Market sentiment remained cautious despite the pause in hostilities. The Strait of Hormuz stayed largely closed, with no indication of renewed negotiations between Washington and Tehran, while oil prices climbed following reports of gunfire targeting container ships. The incidents heightened fears of energy-driven stagflation and the prospect of further interest rate hikes.
Rising bond yields weighed on banks, reinforcing concerns about weaker credit demand. Shares of Itaú, Bradesco, and Banco do Brasil each declined around 1%. Utilities also retreated, with Sabesp down nearly 1% and Axia off 0.4%. Vale slipped close to 1% despite higher iron ore prices, as rival BHP wrapped up talks with China Mineral Resources Group. In contrast, Petrobras advanced 1.5%, supported by stronger crude prices.
