FX.co ★ Ibovespa Extends Losses

The Ibovespa slipped 0.2% on Wednesday, closing at 167,491 and extending the previous session’s 2.5% decline, which had already taken the index to a seven-month low. Persistent uncertainty over the resumption of energy supplies from the Middle East kept inflation concerns elevated.

Most financial stocks traded lower: Itaú retreated 1.5%, and B3 lost 0.3% after reporting a 15.5% year-on-year increase in expenses. Banco do Brasil, however, gained 0.8% ahead of its earnings release scheduled for after the market close.

Among commodity-linked names, Vale slipped 1.6% in tandem with falling iron ore prices, while CSN advanced 0.9% before publishing its results. Petrobras declined 0.5% as international oil prices turned lower.

In the healthcare and utilities space, Rede D’Or fell 2%, and Sabesp edged up 0.5%, with both companies set to release their quarterly figures after the close.

On the macro front, JPMorgan on Tuesday downgraded Brazilian equities to “neutral” within its Latin America allocation, citing weaker economic growth, deteriorating credit conditions, the prospect of higher-for-longer interest rates, and rising volatility ahead of the presidential election. The bank also cut its year-end target for the Ibovespa.