Brazilian equities were mixed as easing inflation expectations lifted lenders, while Petrobras and Vale weakened with energy and iron ore prices. Embraer rallied after financing approval for aircraft exports to Canada.
The Ibovespa moved around the 177,000 level on Monday as hopes for a Middle East peace agreement pressured energy commodities. Oil fell after US President Donald Trump canceled a planned military strike on Iran and opened new negotiations with Tehran, knocking Petrobras down more than 2%. Vale also slipped nearly 1% as iron ore prices declined. Financial stocks outperformed on easing inflation concerns, with Itaú and Bradesco up around 0.5%, while BB Seguridade rose 0.5% ahead of earnings. The BCB Focus Survey cut its 2026 inflation forecast to 5.03% from 5.12% and lowered its year-end Selic projection to 13.75% from 14.00%, reinforcing expectations of less restrictive monetary policy. Embraer climbed more than 2.5% after BNDES approved R$3.3-3.7 billion in financing to support exports of up to 19 aircraft to Canada's Porter Aviation Holdings.