09.09.202620:42:09UTC+00Ibovespa Slips on Political Risks and Inflation Fears

The Ibovespa slipped 0.9% on Wednesday, closing at 185,629 points, pressured by a resurgence of political risk in Brazil and escalating tensions in the Middle East. Supreme Court Justice Flávio Dino ordered the reinstatement of Federal Police chief Andrei Rodrigues, granting an emergency petition just one day after Justice André Mendonça had determined his removal. Mendonça, who is leading a wide-ranging fraud probe involving failed lender Banco Master, had accused the Federal Police of illegally surveilling him and other public officials. The episode underscores Brazil’s deepening political polarization in the run-up to the October presidential election.

At the same time, intensifying conflict in the Middle East drove oil prices higher, reigniting inflation concerns. Major banks retreated, with Itaú shedding 2% and Bradesco falling 2.4%. Utilities also ended in negative territory, including Axia, which dropped 1.9%. WEG (-1.8%) and Ambev (-1.5%) further weighed on the benchmark. Bucking the broader trend, Petrobras advanced 0.7% on the back of firmer oil prices.