16.06.202613:56:18UTC+00Ibovespa Falls on Political and Inflation Concerns

The Ibovespa slipped around 0.5% on Tuesday, trading near the 169,500 level as investors digested new election polls and rising inflation expectations. A BTG/Nexus survey released Monday showed President Lula with a nine-point lead over Senator Flávio Bolsonaro in first-round voting intentions. At the same time, the median forecast for Brazil’s annual inflation increased for the 14th consecutive week, leading markets to reassess how long the BCB’s monetary easing cycle can continue.

Most sectors finished lower. Financial stocks came under pressure amid concerns about higher borrowing costs, with Bradesco and Itaúsa each declining about 0.5%. Petrobras also weighed on the index, dropping nearly 2% on optimism over a preliminary US–Iran peace agreement that could reopen the Strait of Hormuz. Bucking the trend, Sabesp gained more than 1.5% after announcing that Claudio Kawa Hermolin had taken charge of its newly created Customer Experience Division.