The Ibovespa slipped 0.2% on Wednesday, closing at 206,506 in a volatile session shaped by weak domestic data and a negative external backdrop. Services activity fell 0.1% in August, defying expectations for a 0.5% increase. Meanwhile, Brazil’s Industrial Business Confidence Index rose 1.3 points to 46.2 in October but remained below the 50-point neutrality level, marking 22 straight months of pessimism.
Oil prices extended their advance, heightening concerns over energy-driven inflation, while hotter-than-expected US CPI data weighed on banks amid growing bets on a Federal Reserve rate hike. Major lenders retreated, with Itaú down 1.4% and Bradesco off 2.5%. Other financial names also weakened: B3 dropped 1.9% and Itaúsa fell 1.6%.
Miners deepened their declines, with Vale slipping 0.7% as Chinese iron ore prices continued to fall. In contrast, Petrobras gained 2.2%, tracking the renewed rise in oil prices. Investors were also awaiting the release of a new presidential runoff poll after the market close.