The Ibovespa slipped 0.5% on Tuesday to close at 205,835, retreating from Monday’s record high of 206,912. The pullback followed the first round of Sunday’s elections, in which Flávio Bolsonaro outperformed most poll projections by finishing ahead.
The index was dragged down primarily by Petrobras (-2.8%) and Vale (-1.4%). Petrobras declined as the recent oil rally lost momentum, even though crude prices recovered slightly late in the session. Vale extended losses ahead of the reopening of China’s iron ore market, which had been shut from October 1–7 for the National Day holiday.
Banking and exchange-sector stocks also corrected after Monday’s sharp gains. Banco do Brasil fell 6.4% and B3 lost 2.7%, after soaring 11% and 22.6%, respectively, in the previous session. Other notable decliners included Axia (-3.1%), WEG (-1%) and Ambev (-1.5%).
In contrast, Itaú (+2%) and Bradesco (+4.4%) extended their rally, building on Monday’s strong advances of 10.4% and 13.6%, respectively.
On the macroeconomic front, Brazil’s trade surplus jumped 146.4% year over year in September, exceeding market expectations of a $7.19 billion surplus and registering the fastest annual increase since January 2024.