Brazil: Ibovespa Drops on Friday.

The Ibovespa index retreated 0.9% to close at 177,653 on Friday, capping a volatile week as intensifying geopolitical tensions in the Middle East and a strengthening US dollar outweighed the positive domestic momentum from January's services sector growth. While early trading saw gains driven by services activity expanding 0.3% beyond market expectations, the index reversed course as crude oil prices surged back toward $100 per barrel, fueling global risk aversion and prompting a flight to liquidity. Although the Ministry of Finance maintained its 2026 GDP growth projection at 2.3%, the broader market remains burdened by high container costs and the persistent threat of energy-driven inflation, forcing a cautious recalibration of asset valuations as participants await next week’s Federal Reserve and BCB policy meetings.