São Paulo stock market falls 1.64% weekly amid Iran-U.S. oil deal

The São Paulo stock exchange experienced a weekly decline of 1.64%, primarily due to the repercussions of an agreement between Iran and the United States concerning oil prices and recent domestic monetary policy decisions in Brazil. The Ibovespa, Latin America's benchmark index, concluded the week at 168,333 points, showing stability after a series of five consecutive drops.

In the currency market, the Brazilian real saw a depreciation of 0.17% against the U.S. dollar, which closed trading at 5.164 for buying and 5.165 for selling on the commercial exchange. The week's trading was significantly influenced by a memorandum of understanding signed between Iran and the U.S. This agreement, which includes a temporary cessation of hostilities and the reopening of the Strait of Hormuz, a critical chokepoint for global oil transport, led to a decrease in crude oil barrel prices. This directly impacted the valuation of Brazil's state-owned oil company, Petrobras, whose preferred shares experienced a 0.28% drop on Friday.

Domestically, the Central Bank of Brazil reduced its key interest rate by 0.25 percentage points. However, the bank provided no clear guidance on future reductions, creating uncertainty in the markets. This ambiguity contributed to the overall market sentiment. The week also saw significant movements in individual stocks, with meatpacker Minerva and car rental platform Automob experiencing notable losses, while supermarket chain Pão de Açúcar and textile group Azzas saw substantial gains.