Ibovespa Extends Post-Election Losses

The Ibovespa edged lower to trade below 171,000 on Thursday, extending its losing streak to four sessions as financial and energy stocks came under pressure. Investors continued to assess the implications of President Lula’s victory amid fiscal concerns and uncertainty over the composition of his economic team. Financial stocks declined, with Bradesco losing more than 2% after receiving two rating downgrades this week. Itaú BBA cut its rating from buy to neutral and lowered its price target, while JPMorgan downgraded the stock from overweight and also reduced its target. B3 fell more than 1.5%. In the energy sector, Petrobras shed nearly 1% despite posting record third-quarter production, as oil prices declined on hopes for diplomacy in the Middle East. On the data front, the IGP-M index rose 1.47% in October, falling as easing agricultural price pressures helped moderate inflation. Meanwhile, the central government recorded a primary surplus of R$4.839 billion in September.

The Ibovespa fell nearly 2.6% to close at 171,006 on Wednesday, extending its losses to a third consecutive session and reaching its lowest level in about two months. Investors continued to assess the implications of President Lula’s victory amid fiscal concerns and uncertainty over the composition of his economic team. Banking stocks came under particular pressure, with Santander falling 5% after reporting a 28% year-on-year decline in recurring managerial net income. Other financial stocks also retreated, with Bradesco falling 6.7%, Itaú dropping 3.4%, Itaúsa shedding 2.9%, Banco do Brasil losing 3.2%, and B3 declining 5.1%. Utilities weakened as well, with Axia shedding 5.2%. Elsewhere, Ambev fell 2.2% and Vale lost 3% ahead of their earnings reports on Thursday. Petrobras slipped 0.5% despite a rebound in oil prices. Meanwhile, the US Federal Reserve held interest rates steady, as expected.

The Ibovespa fell nearly 2.5% to trade below the 171,000 mark on Wednesday, extending its losses for a third consecutive session and reaching its lowest level in about two months. Investors continued to assess the implications of President Lula’s victory, amid concerns over the fiscal outlook and uncertainty surrounding the composition of the economic team. Banking stocks came under particular pressure, with Santander plunging 5.5% after reporting a 28% year-on-year decline in recurring managerial net income. Other financial stocks also retreated, with Bradesco falling 6%, Itaú dropping more than 3%, Itaúsa and Banco do Brasil losing around 3% each, and B3 declining approximately 5%. Utilities also weakened, with Axia shedding over 5%. Elsewhere, Ambev fell 2.5% and Vale lost around 3% ahead of their earnings reports due on Thursday. Petrobras edged higher 0.3% amid a rebound in oil prices. Meanwhile, the US Federal Reserve held rates steady as expected.