The Ibovespa closed down 0.52% at 171,336.99 points on Tuesday, pressured by weaker international markets and falls in Vale and Petrobras. The dollar rose 1.46% to R$5.5860 after US inflation data came in hotter than expected.
US consumer prices rose 0.4 percent in October, against an expected 0.3 percent. The reading raised concerns about the path of US interest rates, and Federal Reserve officials Christopher Waller and Jeffrey Schmid did not rule out further hikes, including a 0.50 percentage point increase that could come in December.
Domestic pressures on the index
Itaú BBA downgraded Vale’s American depositary receipts from buy to neutral and cut its price target from US$18 to US$14. Vale fell with the broader market while Petrobras, which was due to report third-quarter results shortly afterwards, also weighed on the index.
Minutes from the Copom meeting kept the signal that the Selic rate should stay high for longer. Marcos Bassani, strategist and founding partner at Boa Brasil Capital, said the US inflation reading “undoubtedly accelerated capital flight from the stock market toward Treasuries, reducing global appetite for risk.”
Currency and oil
The dollar closed at its highest level since 31 July 2025, after four consecutive sessions of gains. Brent traded below US$90 a barrel intraday for the first time since August, on expectations of easing Middle East tensions following statements by Donald Trump.
Magazine Luiza rose 11.64 percent and Embraer gained 9.30 percent.
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