Brazil: Ibovespa Muted as Mid-Month Inflation Tops Forecasts.

The Ibovespa traded little changed above the 176,000 mark on Wednesday as investors assessed Brazil’s latest inflation data and monitored developments in the Middle East. Brazil’s mid-month inflation rate rose to 4.64% in May from 4.37% in April, above forecasts of 4.55%, reinforcing expectations that the central bank may keep interest rates elevated for longer. Meanwhile, oil prices moved lower on optimism that the US and Iran could eventually reach a peace agreement despite renewed hostilities and uncertainty surrounding the Strait of Hormuz. Easing energy-driven inflation concerns supported banks, with Itau and Bradesco rising more than 1.5%. WEG also advanced, while Ambev gained 1% after Brazil’s industrial confidence rebounded to the highest level in one year. Vale added 1% despite lower iron ore prices, while Petrobras lost nearly 2% on falling crude prices.