FX.co ★ Ibovespa Slides Ahead of Central Bank Meeting

The Ibovespa declined 0.5% on Tuesday, closing at 188,619, as investors weighed upcoming corporate earnings against fresh inflation data and rising oil prices. Mid-month inflation accelerated to 4.4% in April from 3.9% in March. With the Strait of Hormuz effectively closed, concerns persist that an energy shock could trigger a new wave of global inflation. Although the central bank is widely expected to cut interest rates on Wednesday, investors fear that energy-driven stagflation could ultimately force policymakers to adopt a more hawkish stance later in the year. Most banks finished lower, with Santander and Bradesco both down 0.8%. Vale (-1.3%) and WEG (-1.9%) also lost ground ahead of their earnings releases, while Petrobras advanced 0.7%, supported by higher oil prices.