FX.co ★ Ibovespa Drops on Weak US GDP

The Ibovespa slipped nearly 1% on Friday, closing near the 187,000 level, weighed down by weaker-than-expected economic data from the United States. US GDP expanded just 1.4% in the fourth quarter, undershooting forecasts and signaling reduced resilience in the world’s largest economy amid tariffs and the recent government shutdown. At the same time, key price indicators monitored by the Federal Reserve came in above expectations, dimming prospects for interest rate cuts and sustaining pressure on Brazilian credit markets. In equities, banking shares retreated, with Itaú down 0.7% and Bradesco off 0.8%. Utilities also moved lower, as Axia fell 1% and Sabesp declined 0.6%.