Banks, retail and construction stocks led the decline, with markets also watching a Federal Reserve rate decision scheduled for 15h Brasília time.
Political backdrop unsettles investors
The session unfolded against a tense political backdrop. The Supremo Tribunal Federal had ordered the cancellation of Flávio Bolsonaro’s passports and barred him from leaving the country; he left Brazil regardless. Monte Bravo noted that the closing of part of the yield curve and the real’s recovery on Tuesday pointed to some repositioning, but the Ibovespa remained under pressure.
Attention is centred on whether the government can present a credible fiscal adjustment, with the appointment of a finance minister seen as central to that process. Treasury bond buybacks since the election have helped market liquidity but have not replaced the need for a stronger fiscal signal, Monte Bravo said.
Banks under pressure
Bradesco preferred shares (BBDC4) fell 3.31 percent intraday. Santander units (SANB11) dropped 3.94 percent after Santander Brasil reported a 28 percent fall in third-quarter profit.
Elsewhere, the Fundação Getulio Vargas reported that its Industry Confidence Index slipped 0.3 points in October to 91.0 points, with the Current Situation Index falling 1.1 points to 92.5 and the Expectations Index rising 0.6 points to 89.8. In Germany, GfK’s consumer confidence gauge for November came in at -30.6 points.
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Markets were also positioning for the Federal Reserve’s rate decision, with consensus expecting the central bank to hold its target range between 3.75 and 4 percent. The US federal funds rate stood at 3.88 percent as of 28 October 2026, in force since 26 October.
Oil gains, Asia higher
Oil prices rose on concerns over Middle East supply after an attack on a Saudi refinery, with West Texas Intermediate at $101.80 a barrel and Brent at $115.22. The Dow Jones opened at 52,415 points.
Asian markets closed mostly higher, led by technology shares after SK Hynix reported strong profit growth.
Source: Santander Brasil | Data: FRED — St. Louis Fed
