FX.co ★ Ibovespa Slides on Hawkish BCB Prospects

The Ibovespa fell nearly 1% on Friday, slipping below the 174,000 mark, after stronger-than-expected GDP data reinforced expectations of a more hawkish stance from the Central Bank of Brazil (BCB). The Brazilian economy expanded 1.1% in the first quarter of 2026 from the previous quarter, its fastest pace in a year, bolstering bets that the BCB will keep interest rates elevated for longer to curb persistently high inflation.

Bank shares led the declines, with Itaú, Bradesco, and Santander each losing around 1%. Utilities also came under pressure, as Axia and Sabesp dropped nearly 2%. Petrobras retreated more than 1% as oil prices weakened on renewed optimism over a potential US–Iran peace agreement, after both parties reached a framework deal awaiting approval from US President Donald Trump. Among other notable laggards, Ambev slipped 1.2%, while WEG fell 1%.