FX.co ★ Ibovespa Slips Below as Middle East Tensions Rattle Markets

The Ibovespa fell 1% toward 187,200 on Monday, tracking global equity losses amid escalating Middle East tensions that raise the risk of a prolonged conflict. The United States launched attacks on Iranian authorities over the weekend, and Iran responded by striking multiple countries in the region.

Bank stocks retreated as the jump in energy prices fueled expectations of a more hawkish stance from the BCB and pushed up global credit costs, with Itaú and Bradesco each down nearly 1.5%. Utilities also weakened, with Axia sliding almost 2% on higher input and sourcing costs.

Among individual names, WEG (-1.6%) and Rede D’Or (-3%) underperformed following disappointing fourth-quarter results. Embraer dropped more than 2% ahead of its earnings release later this week.

In contrast, Petrobras gained more than 3%, benefiting from a spike in energy prices following disruptions to oil exports in the Persian Gulf.