26.06.202613:48:25UTC+00Ibovespa Slips as Labor Market Holds Firm

The Ibovespa slipped below the 171,500 level on Friday as investors digested Brazil’s latest labor market data. The unemployment rate edged down to 5.6% in the rolling quarter through May, in line with expectations and remaining at the lowest level in the historical series. The labor market’s resilience strengthened bets that the BCB will keep interest rates higher for longer.

Bank stocks weighed on the index, with Itaú falling more than 0.5% and Bradesco losing nearly 1%. Petrobras also shed around 1% as oil prices retreated to pre-conflict levels amid easing supply concerns, helped by an increase in tanker traffic through the Strait of Hormuz. This occurred despite Iran reaffirming its control over shipping in the area and warning Gulf states against aligning with the US, just one day after an attack on a vessel near Oman underscored the fragility of the preliminary peace deal.

In contrast, meatpackers extended their rally, with MBRF advancing more than 2.5%.