São Paulo Stock Exchange Drops 1.01% in June Amid Fragile Ceasefire

Brazil's benchmark stock index, the Ibovespa, closed June with a 1.01% decline, influenced by international uncertainty surrounding a fragile ceasefire in the Middle East conflict. The index finished the month at 172,024 points, following a 0.68% drop on Tuesday.

On the domestic front, the economic outlook was dampened by disappointing employment data for the first five months of the year. Formal job creation was 28% lower compared to the same period in 2025. Adding to economic concerns, the Brazilian government announced the imminent withdrawal of fuel subsidies, which had been implemented months prior to mitigate price increases stemming from the Middle East conflict.

In currency markets, the Brazilian real appreciated by 0.23% against the U.S. dollar, with the exchange rate settling at 5.162 reais for buying and selling on the commercial exchange. The international scenario remains dominated by uncertainty regarding the future of the agreement between Iran and the U.S. to suspend hostilities, especially after a weekend exchange of attacks.

Among the most traded stocks, state-owned oil company Petrobras saw a 0.8% decrease, and shares of Banco Itaú fell by 0.5%. The largest drops were recorded by ethanol producer Raízen, down 5%, and petrochemical company Braskem, which fell 3.7%. Conversely, cosmetics firm Natura experienced a significant gain of 5.1%, and insurer Qualicorp rose by 5%. The total financial volume traded on the exchange floor reached 22.55 billion reais (approximately $4.35 billion) across more than three million transactions.