FX.co ★ Ibovespa Falls as Inflation Tops Forecasts

The Ibovespa dipped 0.2% on Friday, closing at 171,133 points, as stronger-than-expected inflation data weighed on market sentiment. Brazil’s annual inflation rate accelerated to 4.72% in May from 4.39% in April, surpassing both market forecasts and the upper bound of the Central Bank of Brazil’s target range. The reading reinforced expectations that the monetary authority may adopt a more hawkish stance.

On the international front, investors remained focused on negotiations between the United States and Iran aimed at resolving the ongoing conflict. US President Donald Trump said on Thursday that an agreement could be reached as early as this weekend, while Iranian authorities indicated they had not yet reached a final decision.

Oil prices retreated on hopes of a deal, putting pressure on Petrobras shares, which fell 1.4%. Utilities also ended lower, with Auren down 0.4% and Sabesp off 0.9%. In contrast, Embraer advanced 2.2% after reports that the Greek government plans to purchase aircraft from the company.