FX.co ★ Ibovespa Nears One-Year Low as Petrobras Plunges

The Ibovespa fell nearly 2% on Tuesday, slipping below 165,000 points and approaching a one-year low in the first session after Monday’s holiday, with Petrobras at the forefront of the decline. Petrobras shares tumbled close to 7% as oil prices retreated following US President Donald Trump’s announcement that Washington will end financial support for Israel by year-end, alongside signals from Iranian officials indicating a willingness to pursue diplomacy. Prio also dropped 5.5%.

Major banks traded weakly ahead of the Brazilian Central Bank’s upcoming monetary policy decision, against a backdrop of mounting concerns over the country’s fiscal outlook. Itaú and Bradesco edged lower, while Banco do Brasil slipped nearly 1%.

Utilities were also under pressure, with Axia and Sabesp each losing around 2%. Other notable decliners included WEG (-1%), Ambev (-0.5%), and Rede D’Or (-1.5%).