Brazil's Ibovespa fell 0.2% to close at 167,491 on Wednesday, extending the previous session's 2.5% drop and leaving the benchmark at a seven-month low. Sentiment remained pressured after JPMorgan downgraded Brazilian equities to neutral within Latin America and lowered its year-end target for the index, citing weaker growth, deteriorating credit conditions, higher-for-longer interest rates and increased volatility ahead of the presidential election. Uncertainty over the return of energy supplies from the Middle East kept inflation concerns elevated. Among major stocks, Itaú lost 1.5%, B3 fell 0.3% after reporting a 15.5% year-on-year increase in expenses, Vale shed 1.6% as iron ore prices declined, and Petrobras slipped 0.5% as oil turned lower. Banco do Brasil rose 0.8% ahead of its earnings report due after the bell, while CSN gained 0.9%. Rede D'Or and Sabesp were also scheduled to release results after the close.