Brazil: Ibovespa Drops as Inflation Forecast Rises.

The Ibovespa fell 1% to close at 206,887 on Tuesday, weighed down by losses in major banks, utilities and mining stocks. The Focus survey raised its 2026 inflation forecast to 5.22% from 5.01%, marking a fourth consecutive increase, while the Selic benchmark rate remained unchanged at 13.25%. The IMF also cut its 2026 GDP growth forecast for Brazil to 2.2% from 2.4%, citing a slowdown expected in 2026–2027 due to restrictive interest rates aimed at bringing inflation back to target, the withdrawal of fiscal stimulus and global uncertainty. Major banks declined, with Itau falling 1.6% and Bradesco losing 1%. Utilities also retreated, with Axia down 1.6% and Sabesp shedding 3.1%. Mining stocks weakened as ample global supply, high Chinese inventories and lower shipping costs continued to weigh on iron ore prices. Vale fell 1.1%. In contrast, Petrobras gained 1.5% as oil prices rebounded.