The Ibovespa edged lower on Tuesday, closing at 173,325 amid mixed signals surrounding the conflict in the Middle East. Hopes for a diplomatic breakthrough were lifted by reports that Iran is weighing a mediation proposal for a 10-day ceasefire designed to open the door to a lasting peace agreement. However, ongoing exchanges of attacks between the US and Iran curbed investor optimism.
Utilities underperformed, with Sabesp slipping 1.3%. Industrial names also moved lower, including WEG, down 1.5%, and Embraer, which fell 0.8%. Rede D’Or plunged 4.3% after Congress approved health-sector legislation aimed at overhauling Brazil’s healthcare ecosystem. The new framework has injected uncertainty for private hospital operators, which depend on regulatory predictability and transparent reimbursement rules.
Elevated oil prices underpinned Petrobras, which rose 1.2%. Vale recovered 0.6% after declining in the prior session on weaker iron ore prices. Banks also advanced, supported by lower bond yields, with Banco do Brasil gaining 3.5%.