FX.co ★ Brazil Stocks Extend Selloff

The Ibovespa inched lower on Wednesday, slipping below 168,000 and extending the previous session’s 2.5% decline that had pushed the benchmark to a seven‑month low. Crude oil prices remained volatile amid conflicting signals over a potential US–Iran agreement, keeping inflation concerns elevated.

Most financial stocks hovered around the flatline, while B3 fell nearly 1% after reporting a 15.5% year‑on‑year increase in expenses on Tuesday. Banco do Brasil (-0.3%), Rede D’Or (-0.5%), CSN (+1.5%), and Sabesp (-0.3%) are among the companies scheduled to release their second‑quarter 2026 results after the market close.

Vale retreated more than 1% as iron ore prices declined, while steelmakers advanced. Petrobras slipped 1% as oil prices turned lower.

On Tuesday, JPMorgan cut its recommendation on Brazilian equities to neutral within its Latin America coverage, citing weaker growth, deteriorating credit conditions, the prospect of higher‑for‑longer interest rates, and increased volatility ahead of the presidential election. The bank also reduced its year‑end target for the Ibovespa.