Brazil: Ibovespa Slides on Hawkish BCB Prospects.

The Ibovespa shed nearly 1% to trade below 174,000 on Friday as robust GDP data reinforced the outlook of a hawkish BCB. Brazil’s economy grew 1.1% in the first quarter of 2026 from the previous quarter, the fastest pace in one year, fueling expectations that Central Bank of Brazil will leave rates higher for longer to tackle the high level of inflation. Banks posted led losses, with Itau, Bradesco, and Santander down around 1%. Utilities also posted sharp declines, with Axia and Sabesp losing nearly 2%. Meanwhile, Petrobras fell over 1% as oil prices retreated on renewed hopes for a US-Iran peace deal after both sides agreed on a framework pending approval from US President Donald Trump. Other notable laggards included Ambev (-1.2%) and WEG (-1%).