FX.co ★ Ibovespa Falls on Banking and Energy Losses

The Ibovespa dropped 1% on Friday, closing at 176,210 points, pressured by declines in major banks and energy companies. The banking sector extended its pullback after several months of strong gains. Among the large lenders, only Banco do Brasil advanced, rising 0.6%, while Bradesco fell 1.6%, Itaú Unibanco lost 1.7%, and Santander Brasil declined 1.8%. The sector’s weakness also hit B3, which slipped 2.1%.

In the energy segment, Petrobras retreated 1% amid volatile oil prices. Performance among junior oil companies was mixed, with Prio up 0.6% and Brava Energia down 1.8%. Vale added 0.6% even as iron ore prices ended the week lower.

On the political front, investors reacted to a new election poll showing President Lula widening his first-round lead to nine points, following controversy involving Flávio Bolsonaro and former Banco Master owner Daniel Vorcaro, who faces fraud charges. Looking ahead, markets are focused on next week’s key macroeconomic indicators, particularly Brazil’s first-quarter GDP release.