The Ibovespa fell about 1.5% on Wednesday, hovering near 204,000 points, pressured by an unfavorable external backdrop. Oil prices extended their advance, heightening concerns about energy-driven inflation, while a stronger-than-expected US CPI reading weighed on banks amid renewed uncertainty over the Federal Reserve’s policy path.
Major financial institutions led the decline: Itaú dropped more than 2%, Banco do Brasil lost over 2.5%, and Bradesco slid nearly 4%. Other financial stocks also retreated, with B3 down more than 4% and Itaúsa off nearly 3%. The utilities sector weakened as well, with Sabesp slipping around 2%.
Miners extended their losses, pressured by falling Chinese iron ore prices, with Vale retreating more than 1%. Moving in the opposite direction, Petrobras gained around 1.5%, supported by the renewed rally in international oil prices.