Ibovespa closes flat as US PCE lifts yields
Ibovespa closed flat at 174,586 as earlier gains faded after US PCE came in above forecasts, lifting global yields. Brazil inflation eased to 4.25% in early August, supporting expectations for a Selic cut; financials and Petrobras were mixed.
The Ibovespa closed flat at 174,586 on Wednesday as earlier gains faded following the release of US PCE data.
The Federal Reserve’s preferred inflation gauge came in above forecasts, raising expectations for a restrictive Fed stance and pushing global yields higher.
Vale declined 0.3% despite higher iron ore prices.
Meanwhile, Brazil’s inflation rate eased to 4.25% in the first half of August from 4.44% in July, remaining below the central bank’s 4.5% upper tolerance band and boosting expectations for a Selic rate cut.
Financials provided some support, with Bradesco rising 1.2 and Itaúsa up 0.4%.
Petrobras gained 0.2% despite lower oil prices amid renewed talks between Iran and Oman, while prices remained elevated and prospects for a US-Iran peace deal uncertain.
Sabesp added 1.5% after Itaú BBA reiterated its buy rating following the stock’s slump after its quarterly results.
Embraer rose 0.9% on news of plane acquisitions from LATAM and a likely bid win with the Indian government.