Brazil Stocks Slide as Retail Sales Disappoint

The Ibovespa fell over 1% to around 204,000 on Thursday following weaker-than-expected retail sales data. Brazilian retail sales volume rose 0.1% month-over-month in August, missing forecasts for a 0.7% increase and adding to signs of a gradual slowdown in economic activity. Services and industry point in the same direction, with services volume falling 0.1% and industrial production declining 0.6%. The weakness is most pronounced in sectors sensitive to credit and financial conditions, including furniture, household appliances, vehicles and construction materials. Among major retailers, Magazine Luiza led losses, falling 5%, while other retail stocks declined between 1% and 3.5%. Other credit-sensitive stocks also weakened, with Itaú and Bradesco down about 2%, alongside other major financial shares. Utilities fell as well, with Axia losing nearly 1%. Petrobras and Vale each shed about 1% as oil prices fluctuated and iron ore prices extended their declines.