Ibovespa Hits Three-Month Low
The Ibovespa fell 1.1% to close at 169,186 on Thursday, extending its losing streak to four sessions and hitting a three-month low amid fiscal uncertainty. President Lula’s reelection continued to weigh on sentiment as investors awaited nominations for key positions, including the Finance Ministry, and further details on fiscal policy for his next term. Bond yields posted their sharpest rise since Monday, immediately after the election. Financial stocks declined, with Bradesco losing 3.5% 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 3.3%. Elsewhere, Vale shed 2.2% ahead of its third-quarter earnings report. Ambev dropped 4.4% despite beating profit estimates, as EBITDA disappointed. Petrobras slipped 0.6% despite record third-quarter production, as oil prices declined.
The Ibovespa fell 1.1% to close at 169,186 on Thursday, extending its losing streak to four sessions and hitting a three-month low amid fiscal uncertainty. President Lula’s reelection continued to weigh on sentiment as investors awaited nominations for key positions, including the Finance Ministry, and further details on fiscal policy for his next term. Bond yields posted their sharpest rise since Monday, immediately after the election. Financial stocks declined, with Bradesco losing 3.5% 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 3.3%. Elsewhere, Vale shed 2.2% ahead of its third-quarter earnings report. Ambev dropped 4.4% despite beating profit estimates, as EBITDA disappointed.
Petrobras slipped 0.6% despite record third-quarter production, as oil prices declined.