Brazilian Stocks Head for Fifth Straight Decline

The Ibovespa fell nearly 1% to hover below 168,000 on Friday, hitting a more than three-month low and heading for a fifth consecutive decline amid fiscal uncertainty and Vale’s weak third-quarter results. President Lula’s reelection continued to weigh on sentiment as investors awaited key appointments, including the Finance Minister, and further details on fiscal policy for his next term. Financial stocks declined, with Itaú down more than 1%, Bradesco shedding 2% and BTG Pactual losing over 3%. Vale fell 0.5% after reporting a 53% year-over-year drop in net income. Ambev slipped more than 0.5% despite beating profit estimates, as EBITDA disappointed. In contrast, Petrobras gained over 1% as oil prices rebounded. The Ibovespa was on track to plunge about 18% for the week and more than 9% for the month.