Ibovespa slips below 174,500 after July jobs data
Brazil’s Ibovespa eased below 174,500 on Thursday after July unemployment data (5.3% over three months through July, in line with forecasts). Oil rebounded amid US–Iran sanctions tensions; financials mostly fell.
The Ibovespa edged lower to trade below 174,500 on Thursday following July’s unemployment data and a rebound in oil prices.
Brazil’s unemployment rate stood at 5.3% in the three months through July, in line with forecasts.
The labor market remains highly resilient, with the employed population and the number of formally employed workers reaching record highs, which could lead the Copom to pause its 25-basis-point-per-meeting easing cycle.
Meanwhile, oil prices rebounded after the US and Iran traded recriminations over Washington’s pledge to increase economic pressure on Iran by targeting its trade partners with sanctions, renewing concerns over energy costs.
Financials were mostly lower, with Itaú, Bradesco and Itaúsa down about 0.5%.
Caixa edged higher after reporting a 5.9% increase in 2Q profit and an expansion in its credit portfolio.
Petrobras fell near 0.5% despite higher oil prices, which remain volatile and lower on a weekly basis.