Ibovespa Hits Seven-Month Low Amid Middle East Tensions

The Ibovespa stock index in Brazil slid to below 166,000 on Friday, marking its lowest point in seven months. The decline was attributed to rising tensions in the Middle East, which pushed up oil prices and led to inflationary pressures on energy-driven sectors.

Financials and other credit-sensitive shares were among those affected, with Banco do Brasil, B3, and Caixa Econômica shedding around 1% each. Itaúsa lost a slightly smaller amount, while utilities like Sabesp and CPFL traded lower despite one of them reporting an increase in net profit.

On the other hand, Cemig gained nearly 3% after its quarterly earnings report showed an 8.8% rise in EBITDA. Other companies that reported positive results include Braskem and MBRF, which both saw their shares rise by around 3-5%.