Ibovespa Hits Two-Month Low
The Ibovespa fell nearly 2.6% to close at 171,006 on Wednesday, extending its losses to 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 fiscal concerns and uncertainty over the composition of his economic team. Banking stocks came under particular pressure, with Santander falling 5% after reporting a 28% year-on-year decline in recurring managerial net income. Other financial stocks also retreated, with Bradesco falling 6.7%, Itaú dropping 3.4%, Itaúsa shedding 2.9%, Banco do Brasil losing 3.2%, and B3 declining 5.1%. Utilities weakened as well, with Axia shedding 5.2%. Elsewhere, Ambev fell 2.2% and Vale lost 3% ahead of their earnings reports on Thursday. Petrobras slipped 0.5% despite a rebound in oil prices. Meanwhile, the US Federal Reserve held interest rates steady, as expected.
The Ibovespa fell nearly 2.6% to close at 171,006 on Wednesday, extending its losses to 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 fiscal concerns and uncertainty over the composition of his economic team. Banking stocks came under particular pressure, with Santander falling 5% after reporting a 28% year-on-year decline in recurring managerial net income. Other financial stocks also retreated, with Bradesco falling 6.7%, Itaú dropping 3.4%, Itaúsa shedding 2.9%, Banco do Brasil losing 3.2%, and B3 declining 5.1%.
Utilities weakened as well, with Axia shedding 5.2%. Elsewhere, Ambev fell 2.2% and Vale lost 3% ahead of their earnings reports on Thursday. Petrobras slipped 0.5% despite a rebound in oil prices. Meanwhile, the US Federal Reserve held interest rates steady, as expected.