FX.co ★ Brazilian Stocks Fall as Financials and Petrobras Weigh

The Ibovespa slipped below 171,000 on Thursday, extending its losing streak to a fourth consecutive session as financial and energy stocks came under pressure. Investors continued to weigh the implications of President Lula’s election victory amid mounting fiscal concerns and uncertainty over the makeup of his economic team.

In the financial sector, shares weakened, with Bradesco falling more than 2% after suffering two rating downgrades this week. Itaú BBA cut its recommendation from “buy” to “neutral” and reduced its price target, while JPMorgan lowered its rating from “overweight” and also trimmed its target price. B3 declined more than 1.5%.

In the energy segment, Petrobras lost nearly 1% despite reporting record oil production for the third quarter, as global crude prices retreated on hopes for diplomatic progress in the Middle East.

On the macroeconomic front, the IGP-M index rose 1.47% in October, a deceleration driven by easing agricultural price pressures, which helped moderate overall inflation. Meanwhile, the central government posted a primary surplus of R$4.839 billion in September.