Ibovespa Slips on Energy and Mining Losses

The Ibovespa edged lower to trade near 182,500 on Tuesday, weighed by losses in the energy and mining sectors. Petrobras lost more than 1% amid a pullback in oil prices as US and Iranian officials continued separate discussions with mediators. Vale shed over 1.5%, while CSN Mineração and Usiminas lost more than 3% each as iron ore prices fell. Iron ore prices in China closed lower, pressured by increased port arrivals and persistently weak steel demand ahead of a national holiday. CSN Mineração announced a temporary reduction in low-grade iron ore production due to higher freight costs and a challenging market environment. Steelmakers also fell, with CSN slumping 8%. On the data front, unemployment stood at 5.3% in the rolling quarter ended in August, unchanged from the previous quarter and matching expectations. Meanwhile, an Atlas/Bloomberg poll confirmed a technical tie between President Lula and Flávio Bolsonaro in a second-round scenario for the October presidential election.