FX.co ★ Ibovespa Falls Following Inflation Report

The Ibovespa slipped more than 0.5% to trade near 171,000 points on Thursday, following the release of October inflation data and a fresh round of corporate earnings. Year-over-year inflation rose to 4.63% in October from 4.58% in September, coming in below market expectations of 4.74% but reaching a four-month high and remaining above the BCB’s 4.5% target ceiling. With 12‑month inflation still exceeding the target, the central bank is expected to stay cautious about resuming its Selic easing cycle.

Credit-sensitive stocks retreated. Financials weakened, with Itaú, Bradesco, and Itaúsa each dropping close to 1%. Banco do Brasil sank nearly 8% after its Q3 results missed estimates and the bank lowered both its guidance and dividend payouts. B3 declined about 1% ahead of its earnings release.

Utilities also lost ground, with Axia down 1.5%. In the healthcare sector, Rede D’Or slipped more than 0.5% ahead of its results. Among commodities, Vale fell around 1% amid lower iron ore prices, while Petrobras advanced more than 1% despite volatile oil prices.