The Ibovespa swung between gains and losses around the 180,000 level on Friday, as escalating tensions in the Middle East worsened the global inflation outlook. Rising risk aversion worldwide—driven by higher energy costs, fresh supply chain disruptions, and weak US labor market data—pushed domestic yields higher, weighing on interest-sensitive and cyclical stocks and increasing borrowing costs for consumers already dealing with elevated benchmark rates.
Major banks retreated, with Bradesco down more than 1% and Itaú off 0.6%. Other notable decliners included Vale (-0.5%), Axia (-0.8%), Embraer (-1.6%), and Ambev (-0.7%). In contrast, Petrobras advanced 2%, buoyed by higher oil prices and solid earnings. Rede D'Or also added 0.5% after the Nossa Senhora de Lourdes real estate investment fund disclosed in its December 2025 monthly report that it had signed an agreement with tenant Rede D'Or to resolve ongoing legal disputes and establish a new lease contract.