The Ibovespa ended Thursday’s session virtually unchanged at 185,188, halting an 11-day winning streak. The index had risen nearly 2% at the open, but gains faded as investors moved to lock in profits. The recent rally had been underpinned by election polls showing President Lula narrowing the gap with Flávio Bolsonaro, whom markets perceive as more fiscally conservative, against a backdrop of high interest rates and subdued business activity. Investors were awaiting a new Datafolha poll scheduled for release later on Thursday.
On the macroeconomic front, the latest data pointed to a second consecutive monthly contraction in private-sector activity, though the decline was milder than in the previous month. Services activity posted a slight rebound, suggesting that demand conditions are beginning to stabilise.
In corporate moves, large banks helped cushion the index: Itaú advanced 1.2%, Santander climbed 1.7%, and Banco do Brasil added 0.8%. Embraer gained 1.5% after announcing a cybersecurity-focused business combination with SPX Capital. CSN jumped 6.7% following news of a CEO change. On the downside, Vale slipped 2.9% and Petrobras fell 1.3%.