Brazilian Stocks Extend Losses Amid Fiscal Uncertainty
The Ibovespa fell nearly 2% to trade below the 173,000 mark on Wednesday, extending its losses for a third consecutive session and reaching its lowest level in about two months. Investors continued to assess the implications of President Lula’s victory, amid concerns over the fiscal outlook and uncertainty surrounding the composition of the economic team. Banking stocks came under particular pressure, with Santander plunging 4% after reporting a 28% year-on-year decline in recurring managerial net income. Other financial stocks also retreated, with Bradesco falling 4%, Itaú dropping more than 2%, Itaúsa and Banco do Brasil losing around 2% each, and B3 declining approximately 2%. Utilities also weakened, with Axia shedding nearly 2%. Elsewhere, Ambev fell more than 0.5% and Vale lost around 1% ahead of their earnings reports due on Thursday. Petrobras slipped more than 0.5%, despite a rebound in oil prices.
The Ibovespa fell nearly 2% to trade below the 173,000 mark on Wednesday, extending its losses for a third consecutive session and reaching its lowest level in about two months. Investors continued to assess the implications of President Lula’s victory, amid concerns over the fiscal outlook and uncertainty surrounding the composition of the economic team. Banking stocks came under particular pressure, with Santander plunging 4% after reporting a 28% year-on-year decline in recurring managerial net income.
Other financial stocks also retreated, with Bradesco falling 4%, Itaú dropping more than 2%, Itaúsa and Banco do Brasil losing around 2% each, and B3 declining approximately 2%. Utilities also weakened, with Axia shedding nearly 2%. Elsewhere, Ambev fell more than 0.5% and Vale lost around 1% ahead of their earnings reports due on Thursday. Petrobras slipped more than 0.5%, despite a rebound in oil prices.