05.03.202614:15:33UTC+00Ibovespa Falls as Middle East Conflict Escalates

The Ibovespa declined more than 0.5%, slipping below 184,500 on Thursday, as the worsening conflict in the Middle East continued to cloud the global growth outlook. Banking shares came under pressure amid concerns that disruptions to global energy supply could fuel inflation in Brazil, pushing domestic yields higher and increasing borrowing costs for consumers already facing elevated benchmark interest rates. Bradesco and Itaú each lost more than 0.5%.

Adding to the cautious mood, Brazil’s unemployment rate remained near its record low, even after a seasonally typical increase in January, reinforcing the stance of hawkish members of the central bank (BCB). In corporate moves, Axia fell 1.5% as investors locked in gains from its recent rally, while Petrobras advanced 0.5%, supported by higher oil prices and expectations of record full-year revenue ahead of its results release.