FX.co ★ Ibovespa Drops as Weak Earnings Weigh

The Ibovespa slipped 0.2% to close at 167,101 on Thursday, reversing earlier gains and settling at a seven-month low amid a series of disappointing corporate earnings.

Banco do Brasil fell 4.2% after reporting second-quarter profits below market expectations. Sabesp dropped 7% following an 11.2% year-on-year decline in net income, while CSN Mineração lost 5.2% after delivering cash flow figures that undershot forecasts.

In contrast, CSN advanced 5.6% despite posting a net loss, as the result was less negative than anticipated and revenue increased 6%. Hapvida plunged 33.1% after its second-quarter results revealed margin compression and rising legal expenses. Rede D’Or gained 6.3% on the back of a 9.7% year-on-year increase in net profit.

Vale slipped 1.7% as iron ore prices weakened, with poor profitability among Chinese steelmakers continuing to weigh on prospects for a meaningful rebound in ore demand. Petrobras rose 1.1% despite softer oil prices, supported by ongoing deadlock in Middle East peace talks.