The Ibovespa shed 0.2% to close at 167,491 on Wednesday, extending the previous session’s 2.5% drop that pushed the index to a seven-month low. Uncertainty over the return of energy supplies from the Middle East maintained inflationary concerns. Financials were mostly lower, with Itau losing 1.5%. B3 fell 0.3% after reporting a 15.5% year-on-year increase in expenses. Banco do Brasil added 0.8% ahead of its earnings report due after the bell. Vale shed 1.6% as iron ore prices declined, while CSN rose 0.9% ahead of its earnings. Petrobras fell 0.5% as oil prices turned lower. Rede D’Or (-2%) and Sabesp (+0.5%) are scheduled to release results after the close. JPMorgan downgraded Brazilian equities to neutral within Latin America on Tuesday, citing weaker growth, deteriorating credit conditions, higher-for-longer rates, and increased volatility ahead of the presidential election. The bank also lowered its year-end Ibovespa target.