Ibovespa Falls After GDP Data Release - Petrobras (PETR4) and Vale (VALE3) Drag Index Down Due to Iron Ore and Oil Decline

In Short:

The Ibovespa started Tuesday's session with a decline, reflecting the release of first-quarter GDP data and falling commodity prices. By around 10:05 AM, the stock index had dropped 0.39% to 121,550.01 points. The Brazilian economy accumulated R$ 2.7 trillion between January and March, with a growth of 0.8% during the period, according to data from IBGE, in line with market expectations.

In the external market, commodity prices continued to fall. Iron ore closed Tuesday's trading down 2.11% on the Dalian exchange in China, which negatively impacted Vale (VALE3) shares, which fell 1.07% to R$ 61.21. Additionally, oil prices were also trading lower, putting pressure on Petrobras (PETR4) shares, which dropped 0.73% to R$ 38.30.

Major banks also contributed to the Ibovespa's decline, with Bradesco (BBDC4) shares falling 0.31% to R$ 12.69, Itaú Unibanco (ITUB4) dropping 0.48% to R$ 31.30, Santander (SANB11) decreasing 0.93% to R$ 27.60, and Banco do Brasil (BBAS3) down 0.37% to R$ 27.05. These movements solidified the index's downward trend, reflecting investor caution amid the current economic scenario.