Ibovespa Posts Worst Week Since Pandemic

The Ibovespa fell 0.7% to close at 167,922 on Friday, extending its losing streak to five sessions and posting its worst weekly performance since March 2020, at the height of the pandemic. The index had rallied in early October amid bets on a change in government and fiscal adjustment. However, Lula’s reelection triggered the unwinding of those positions, while concerns over public spending and debt prolonged the selling pressure. The shift particularly affected companies sensitive to credit conditions and consumer spending. Banks declined, with Bradesco and Itaú each losing 2.1%. Steelmakers posted sharp losses, with CSN plunging 8.5%. In contrast, Vale, whose shares had plunged more than 11% over the month, rose 3.3% despite reporting a net loss in the third quarter, as its copper business helped offset costs in iron ore and nickel. Petrobras also advanced 1%, tracking oil prices. The Ibovespa sank 17.3% on the week and 10% for the month.