Oil selloff and hawkish policy tones drive Brazil underperformance

研报英文原文证据摘录

Oil selloff and hawkish policy tones drive Brazil underperformance

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Latam Equity Quant

Oil selloff and hawkish policy tones drive

Brazil underperformance

Investment Strategy

Key takeaways 19 June 2026

Investment Strategy• Brazil underperformed EM this week, with EM performance mainly driven by tech

Latin America companies.

• Rate-sensitive names, oil, and steel were the main laggards within the Ibovespa this

week. See the list on page 2.

• Last week, Brazil equity funds recorded their largest outflow in the past 15 weeks.

This week in numbers

Performance of the week, USD terms: Ibovespa -4%, Mexbol +0.8%, versus the S&P

500 +0.8%, with EM up 4% in USD total return terms. EM outperformance this week

David Beker >>

was mainly driven by tech companies in South Korea and Taiwan. Oil is down 11%. In Bz Econ/FI & LatAm EQ Strategy

Brazil, Petrobras was the main drag on the Ibovespa (-10% WTD). Merrill Lynch (Brazil) +55 11 2188 4371

david.beker@bofa.com

Our quantitative screen of “Brazilian Magnificent 7” stocks, (MercadoLibre, Nubank, Paula Andrea Soto, CFA >>

WEG, BTG Pactual, Raia Drogasil, Localiza, and Itaú), which has a growth bias, is -0.4% LatAm Equity Strategist

this week. Our “Unforgettable 7” screening (Petrobras, Vale, JBS, Banco do Brasil, Merrill+55 11Lynch2188 (Brazil)4226

Ambev, Bradesco, Gerdau), which has a value bias, is -5.2% this week. paula.soto@bofa.com

Carlos Peyrelongue >>

Outperformers and laggards of the week amid falling oil prices and hawkish Fed Mex Eq Strat/Research Analyst

and Copom tones: Within the Ibovespa, global industrials, pulp and paper, and insurance Merrill+52 55Lynch5201 (Mexico)3276

companies outperformed this week. Meanwhile, rate-sensitive names, oil, and steel were carlos.peyrelongue@bofa.com