Brazilian Stocks Fall as Financials and Petrobras Weigh
The Ibovespa edged lower to trade below 171,000 on Thursday, extending its losing streak to four sessions as financial and energy stocks came under pressure. Investors continued to assess the implications of President Lula’s victory amid fiscal concerns and uncertainty over the composition of his economic team. Financial stocks declined, with Bradesco losing more than 2% after receiving two rating downgrades this week. Itaú BBA cut its rating from buy to neutral and lowered its price target, while JPMorgan downgraded the stock from overweight and also reduced its target. B3 fell more than 1.5%. In the energy sector, Petrobras shed nearly 1% despite posting record third-quarter production, as oil prices declined on hopes for diplomacy in the Middle East. On the data front, the IGP-M index rose 1.47% in October, falling as easing agricultural price pressures helped moderate inflation. Meanwhile, the central government recorded a primary surplus of R$4.839 billion in September.
The Ibovespa edged lower to trade below 171,000 on Thursday, extending its losing streak to four sessions as financial and energy stocks came under pressure. Investors continued to assess the implications of President Lula’s victory amid fiscal concerns and uncertainty over the composition of his economic team. Financial stocks declined, with Bradesco losing more than 2% after receiving two rating downgrades this week. Itaú BBA cut its rating from buy to neutral and lowered its price target, while JPMorgan downgraded the stock from overweight and also reduced its target.
B3 fell more than 1.5%. In the energy sector, Petrobras shed nearly 1% despite posting record third-quarter production, as oil prices declined on hopes for diplomacy in the Middle East. On the data front, the IGP-M index rose 1.47% in October, falling as easing agricultural price pressures helped moderate inflation. Meanwhile, the central government recorded a primary surplus of R$4.839 billion in September.