Ibovespa Sets New Record High

The Ibovespa fell over 1% to around 204,000 on Thursday following weaker-than-expected retail sales data. Brazilian retail sales volume rose 0.1% month-over-month in August, missing forecasts for a 0.7% increase and adding to signs of a gradual slowdown in economic activity. Services and industry point in the same direction, with services volume falling 0.1% and industrial production declining 0.6%. The weakness is most pronounced in sectors sensitive to credit and financial conditions, including furniture, household appliances, vehicles and construction materials. Among major retailers, Magazine Luiza led losses, falling 5%, while other retail stocks declined between 1% and 3.5%. Other credit-sensitive stocks also weakened, with Itaú and Bradesco down about 2%, alongside other major financial shares. Utilities fell as well, with Axia losing nearly 1%. Petrobras and Vale each shed about 1% as oil prices fluctuated and iron ore prices extended their declines.

The Ibovespa edged down 0.2% to close at 206,506 on Wednesday in a volatile session amid weak economic data and an unfavorable external backdrop. Services activity contracted 0.1% in August, missing expectations for a 0.5% increase. Brazil’s Industrial Business Confidence Index rose 1.3 points to 46.2 in October but remained below the 50-point threshold, marking 22 consecutive months of pessimism. Oil prices extended their gains, stoking concerns over energy-driven inflation, while hotter-than-expected US CPI data pressured lenders amid increasing bets of a the Federal Reserve’s rate hike. Major banks declined, with Itaú down 1.4% and Bradesco losing 2.5%. Other financial stocks also fell, with B3 shedding 1.9% and Itaúsa losing 1.6%. Miners extended their losses, with Vale down 0.7% as Chinese iron ore prices continued to decline. In contrast, Petrobras rose 2.2% as oil prices resumed their climb. Investors awaited a new presidential runoff poll after the market close.

The Ibovespa fell about 1.5% to hover near 204,000 on Wednesday amid an unfavorable external backdrop. Oil prices extended gains, fueling concerns over energy-driven inflation, while higher-than-expected US CPI inflation pressured lenders amid uncertainty over the Fed’s policy outlook. Major banks posted losses, with Itaú down more than 2%, Banco do Brasil shedding over 2.5%, and Bradesco falling nearly 4%. Other financial stocks also declined, with B3 losing more than 4% and Itaúsa shedding nearly 3%. Utilities retreated as well, with Sabesp down 2%. Miners extended their losses, with Vale falling more than 1% as Chinese iron ore prices continued to decline. In contrast, Petrobras rose around 1.5% as oil prices resumed their climb.