Brazilian Stocks Decline Amid Unfavorable External Backdrop
The Ibovespa fell 0.5% to below 168,000 points, erasing earlier gains as a sharp selloff on Wall Street weighed on global equity markets. Shares of companies linked to semiconductors and data centres came under pressure after Democratic gains in the US midterm elections raised concerns about increased regulatory scrutiny of the rapid expansion of AI. Meanwhile, investors remained focused on Brazil’s fiscal outlook, particularly the government’s commitment to controlling public spending and debt, which has risen significantly in recent years. The BCB kept the Selic rate unchanged at 13.75% at its November meeting, amid a challenging economic backdrop of weaker growth, higher inflation and increased uncertainty following President Lula’s reelection. Losses were broad-based, led by WEG (-4%) and Embraer (-5%), while Petrobras and Bradesco each fell 1%. In contrast, Vale gained nearly 1%, supported by higher iron ore prices.
The Ibovespa fell 0.5% to below 168,000 points, erasing earlier gains as a sharp selloff on Wall Street weighed on global equity markets. Shares of companies linked to semiconductors and data centres came under pressure after Democratic gains in the US midterm elections raised concerns about increased regulatory scrutiny of the rapid expansion of AI. Meanwhile, investors remained focused on Brazil’s fiscal outlook, particularly the government’s commitment to controlling public spending and debt, which has risen significantly in recent years.
The BCB kept the Selic rate unchanged at 13.75% at its November meeting, amid a challenging economic backdrop of weaker growth, higher inflation and increased uncertainty following President Lula’s reelection. Losses were broad-based, led by WEG (-4%) and Embraer (-5%), while Petrobras and Bradesco each fell 1%. In contrast, Vale gained nearly 1%, supported by higher iron ore prices.