The Ibovespa closed nearly 0.5% lower on Tuesday, around 171,500 points, reversing earlier gains as attention turned to the Copom minutes and the prospect of further US interest rate hikes. The minutes from Copom’s latest meeting indicated that the recent moderation in economic activity could deepen, but also highlighted worsening inflation expectations and rising consumer prices as justification for keeping monetary policy in restrictive territory.
In the United States, stronger-than-expected inflation data for October bolstered expectations of additional rate increases by the Federal Reserve, weighing on risk assets. Interest rate–sensitive shares led the declines on the local market, with major banks and utilities under pressure: Itaú fell nearly 1%, Bradesco slid more than 1.5%, and Axia retreated over 1%. Vale also lost ground, dropping 2% as iron ore prices weakened and the stock surrendered part of its recent gains.
On the corporate front, Embraer surged almost 9% after reporting revenue that beat market estimates and posting a record for the third quarter. Itaúsa slipped 0.3% even as its net profit rose 25% year-on-year. Petrobras advanced more than 0.5% ahead of its earnings release scheduled for later today.