Ibovespa Slips on Copom Minutes
The Ibovespa fell nearly 0.5% to around 171,500 on Tuesday, erasing earlier gains as market focus shifted to the Copom minutes and prospects of a US rate hike. Copom’s latest minutes showed that moderation in activity may intensify, but deteriorating inflation expectations and rising consumer costs require monetary policy to remain restrictive. Meanwhile, hotter-than-expected October US inflation reinforced expectations of further Federal Reserve hikes. Credit-sensitive stocks posted losses, with major banks and utilities down: Itaú shed nearly 1%, Bradesco lost over 1.5%, and Axia dropped more than 1%. Vale pared recent gains, falling 2% amid lower iron ore prices. On the earnings front, Embraer soared nearly 9% after reporting revenue above estimates and setting a Q3 record. Itaúsa edged 0.3% lower despite a 25% annual increase in net profit. Petrobras added over 0.5% ahead of its earnings report today.
The Ibovespa fell nearly 0.5% to around 171,500 on Tuesday, erasing earlier gains as market focus shifted to the Copom minutes and prospects of a US rate hike. Copom’s latest minutes showed that moderation in activity may intensify, but deteriorating inflation expectations and rising consumer costs require monetary policy to remain restrictive. Meanwhile, hotter-than-expected October US inflation reinforced expectations of further Federal Reserve hikes. Credit-sensitive stocks posted losses, with major banks and utilities down: Itaú shed nearly 1%, Bradesco lost over 1.5%, and Axia dropped more than 1%.
Vale pared recent gains, falling 2% amid lower iron ore prices. On the earnings front, Embraer soared nearly 9% after reporting revenue above estimates and setting a Q3 record. Itaúsa edged 0.3% lower despite a 25% annual increase in net profit. Petrobras added over 0.5% ahead of its earnings report today.