Ibovespa Slips on Inflation Concerns
The Ibovespa shed 0.4% to close at 185,229 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 Itaú losing 0.6% and Bradesco down 0.9%. Utilities also posted losses, with Axia shedding 2.9%. Miners traded lower despite higher Chinese iron ore prices, with Vale retreating 1.5%, CSN Mineração down 1.9%, and Usiminas losing 2.7%. Cemig fell 0.6% after JPMorgan maintained its sell recommendation on the stock. Petrobras edged 0.2% lower despite higher oil prices. The Ibovespa lost 1.1% on the week.
4% to close at 185,229 on Friday following the release of IGP-M inflation data for September. 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.
9%. 9%. 7%. 6% after JPMorgan maintained its sell recommendation on the stock.
2% lower despite higher oil prices. 1% on the week.