Ibovespa Falls on Inflation Concerns

The Ibovespa shed about 0.5% to trade below 185,500 on Friday following the release of IGP-M inflation data for September. Brazil’s General Price Index — Market rose 1.47% in the second preview for September, rebounding from the 0.36% deflation recorded in the same August reading. Meanwhile, oil prices moved higher, recovering from a pullback as supply concerns persisted. Elevated energy costs continue to put upward pressure on inflation and, consequently, borrowing costs. Major banks moved lower, with Banco do Brasil losing 2% and Bradesco down more than 0.5%. Utilities also posted losses, with Axia shedding nearly 1%. Miners traded lower despite higher Chinese iron ore prices, with CSN Mineração down 1.5% and Usiminas losing 1%. Cemig fell nearly 1% after JPMorgan maintained its sell recommendation on the stock. Petrobras lost nearly 0.5% despite higher oil prices.