FX.co ★ Ibovespa Drops on Geopolitical Tensions

The Ibovespa fell 1.8% on Wednesday, closing at 177,098 points, as waning expectations for a peace agreement between the United States and Iran weighed on investor sentiment. The setback in negotiations this week dimmed hopes for a reopening of the Strait of Hormuz, while worries about stagflationary pressures and rising bond yields continued to drag down banks and the broader market. Most stocks ended the session lower. In the financial sector, Bradesco declined 1.7% and Itaúsa slipped 1.4%. Utilities also weakened, with Sabesp down 1.5% and Azzas losing 4.2%. Petrobras retreated 2.4%, while Ambev (-1.4%) and Rede D’Or (-3.3%) also recorded losses. Bucking the trend, Vale advanced 1.3% on the back of higher iron ore prices. After the close, Banco do Brasil (-2.6%), CSN (-3%), and Eneva (-2.1%) are scheduled to release their earnings results.