Brazil: Ibovespa Falls as Strong GDP Boosts Hawkish BCB Bets.

The Ibovespa lost 0.7% to close at 173,787 on Friday as stronger-than-expected GDP data reinforced the view that the current cycle of Selic rate cuts may be limited. Brazil’s economy grew 1.1% in the first quarter from the previous three months, accelerating from a 0.3% expansion in Q4 2025 and marking the strongest quarterly growth since Q1 2025. The data strengthened expectations of a hawkish BCB, pushing bond yields higher and weighing on equities. Banks led losses, with Bradesco down 1.1% and Banco do Brasil shedding 1.5%. Petrobras fell 1.2% as oil prices retreated after a deal to extend the US-Iran ceasefire renewed hopes for an end to the Middle East conflict. Vale also lost 1.4% despite higher iron ore prices.