Ibovespa Falls Following Inflation Report
The Ibovespa fell over 0.5% to hover near 171,000 on Thursday following the release of October’s inflation data and amid a new batch of corporate earnings. Annual inflation rose to 4.63% in October from 4.58% in September, below market expectations of 4.74% but marking a four-month high and remaining above the BCB’s 4.5% target ceiling. With 12-month inflation still above target, the central bank is expected to remain cautious about resuming the Selic easing cycle. Credit-sensitive stocks fell. Financials declined, with Itaú, Bradesco, and Itaúsa each losing nearly 1%. Banco do Brasil plunged nearly 8% after Q3 results missed estimates and the bank cut its projections and dividends. B3 shed 1% ahead of its earnings. Utilities declined, with Axia down 1.5%. Elsewhere, Rede D’Or shed over 0.5% ahead of its results. Vale fell 1% on lower iron ore prices, while Petrobras added over 1% despite volatile oil prices.
The Ibovespa fell over 0.5% to hover near 171,000 on Thursday following the release of October’s inflation data and amid a new batch of corporate earnings. Annual inflation rose to 4.63% in October from 4.58% in September, below market expectations of 4.74% but marking a four-month high and remaining above the BCB’s 4.5% target ceiling. With 12-month inflation still above target, the central bank is expected to remain cautious about resuming the Selic easing cycle. Credit-sensitive stocks fell.
Financials declined, with Itaú, Bradesco, and Itaúsa each losing nearly 1%. Banco do Brasil plunged nearly 8% after Q3 results missed estimates and the bank cut its projections and dividends. B3 shed 1% ahead of its earnings. Utilities declined, with Axia down 1.5%.
Elsewhere, Rede D’Or shed over 0.5% ahead of its results. Vale fell 1% on lower iron ore prices, while Petrobras added over 1% despite volatile oil prices.