05.03.202621:25:38UTC+00Ibovespa Tumbles on Global Risk Aversion

The Ibovespa tumbled 2.5% to 180,466 on Thursday, as escalating geopolitical tensions in the Middle East and renewed fears over stubborn domestic inflation triggered a broad sell-off in Brazilian equities. Heightened global risk aversion, fueled by concerns over supply chain disruptions, pushed domestic yields higher and led investors to unwind interest-sensitive and cyclically exposed positions.

Industrial and materials stocks were among the hardest hit. Embraer slid 5.7%, while Companhia Siderúrgica Nacional dropped 6.1%, as markets factored in weaker export demand. Major financials also came under pressure, with Banco do Brasil and Banco Santander Brasil losing more than 3% each amid a deteriorating outlook for credit expansion due to rising borrowing costs.

Even commodity bellwethers were not spared. Vale declined 3.4% as investors reduced exposure to cyclical names in the midst of the correction. In contrast, Braskem stood out as a rare bright spot, surging 16.9% against the broader market trend.