Ibovespa falls nearly 1% below 182,500 as oil prices rally

  • Ibovespa fell nearly 1% below 182,500 Monday amid higher oil prices and Focus survey.
  • BCB’s Focus survey lifted the 2026 inflation forecast from 4.92% to 4.99%.
  • 2026 year-end Selic forecast stayed at 13.50%, while Lula widened his lead over Flávio Bolsonaro.

The Ibovespa fell nearly 1% to below 182,500 on Monday as oil prices resumed their rally after US President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz. The move revived concerns that energy-driven inflation shocks could keep interest rates higher for longer, pushing yields up and weighing on credit-sensitive shares. Itaú, Bradesco and BB lost about 1%, while Sabesp fell nearly 1%. The BCB’s Focus survey raised the market’s 2026 inflation forecast from 4.92% to 4.99%, while the year-end 2026 Selic (Brazil’s benchmark interest rate) forecast held at 13.50%. A new election poll showed President Lula widening his lead over Flávio Bolsonaro, whom markets view as more fiscally restrictive amid elevated domestic yields and weak business activity. Vale fell 1% as iron ore prices declined, while Petrobras rose more than 1%.

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