FX.co ★ Ibovespa Retreats After Hotter-Than-Expected Inflation

The Ibovespa fell more than 1% on Thursday, slipping below the 182,000 mark as a domestic inflation surprise coincided with a global surge in energy prices. Losses were partly cushioned by Petrobras, which advanced over 2.5% as Brent crude climbed above $100 per barrel amid escalating conflict in the Middle East. The rally in commodities offered a partial hedge for energy heavyweights, even as the International Energy Agency evaluated measures to contain supply fears.

In contrast, the high interest rate environment exerted significant pressure on the broader market. Brazil’s monthly consumer price index rose 0.7% in February, the largest increase in a year, heightening concerns that borrowing costs will need to remain restrictive to counter persistent inflation. These tighter financing conditions triggered a rotation out of interest‑sensitive industrial and financial stocks: major lenders such as Banco Santander and Bradesco traded lower, while Vale declined 1.2% amid broader stagflation worries.