FX.co ★ Brazilian Stocks Head for Fifth Straight Decline

The Ibovespa fell nearly 1% on Friday, slipping below 168,000 points to its lowest level in more than three months and extending its losing streak to a fifth consecutive session. The decline was driven by mounting fiscal uncertainty and disappointing third-quarter results from Vale. Investor sentiment remained under pressure following President Lula’s reelection, as markets awaited key government appointments — particularly the Finance Minister — and clearer guidance on the fiscal framework for his next term.

Financial stocks retreated, with Itaú losing more than 1%, Bradesco down 2%, and BTG Pactual dropping over 3%. Vale declined 0.5% after posting a 53% year-on-year plunge in net income. Ambev slipped more than 0.5%: although it exceeded profit forecasts, its EBITDA came in weaker than expected. In contrast, Petrobras advanced more than 1%, supported by a rebound in international oil prices. For the week, the Ibovespa was on track for a drop of roughly 18%, and a loss of more than 9% for the month.