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Brazil's Ibovespa Hits Seventh Record High Amid Global Risk Aversion And Rate Expectations
(MENAFN- The Rio Times) Brazil's benchmark Ibovespa index defied mounting international pressures to notch its tenth consecutive gain and seventh straight record close on November 4, rising 0.17% to 150,704.20 points.
This resilience came despite a volatile session fueled by global risk aversion, as investors awaited the Central Bank's Copom decision, expected to hold the Selic rate steady at 15%-a prudent move underscoring the institution's commitment to inflation control amid improving economic indicators.
Domestically, Finance Minister Fernando Haddad's push for imminent rate cuts, even suggesting he would slash them if in charge, highlighted ongoing tensions between fiscal ambitions and monetary independence.
His remarks, citing better inflation data, clashed with the bank's cautious stance, potentially stoking concerns over populist influences on policy.
Adding to fiscal unease, the Senate delayed votes on key bills taxing online betting and fintechs, alongside income tax exemptions-measures that could bolster revenue but risk overburdening innovative sectors.
Globally, Wall Street tumbled, with the Dow Jones down 0.53%, S&P 500 off 1.17%, and Nasdaq falling 2.04%, battered by a prolonged U.S. government shutdown and warnings from Morgan Stanley and Goldman Sachs about overvalued stocks.
Ibovespa climbs on bank and pulp gains despite global drag
Europe's Stoxx 600 slipped 0.30% on UK fiscal worries, while Asia's Nikkei and Hang Seng dropped 1.74% and 0.79%, respectively. Commodity weakness further pressured Brazilian heavyweights.
Among top performers, Klabin led gains, buoyed by strong third-quarter results, adjusted EBITDA highlights from Santander, and a R$318 million dividend payout.
Banco do Brasil rose 1% post-earnings, Itaú Unibanco climbed 1.66% amid sector stability, Bradesco advanced on banking resilience, and Suzano benefited from dollar strength.
On the downside, Embraer topped losses, reacting to U.S. tariffs despite in-line results per BTG Pactual; Cosan fell after pricing its R$9.06 billion share offering at R$5; Vale declined on commodity drags; Petrobras slipped similarly; and Raízen dropped amid energy sector headwinds.
As markets eye Copom's verdict, the Ibovespa's upward trajectory reflects robust fundamentals, though overbought signals hint at potential consolidation.
This resilience came despite a volatile session fueled by global risk aversion, as investors awaited the Central Bank's Copom decision, expected to hold the Selic rate steady at 15%-a prudent move underscoring the institution's commitment to inflation control amid improving economic indicators.
Domestically, Finance Minister Fernando Haddad's push for imminent rate cuts, even suggesting he would slash them if in charge, highlighted ongoing tensions between fiscal ambitions and monetary independence.
His remarks, citing better inflation data, clashed with the bank's cautious stance, potentially stoking concerns over populist influences on policy.
Adding to fiscal unease, the Senate delayed votes on key bills taxing online betting and fintechs, alongside income tax exemptions-measures that could bolster revenue but risk overburdening innovative sectors.
Globally, Wall Street tumbled, with the Dow Jones down 0.53%, S&P 500 off 1.17%, and Nasdaq falling 2.04%, battered by a prolonged U.S. government shutdown and warnings from Morgan Stanley and Goldman Sachs about overvalued stocks.
Ibovespa climbs on bank and pulp gains despite global drag
Europe's Stoxx 600 slipped 0.30% on UK fiscal worries, while Asia's Nikkei and Hang Seng dropped 1.74% and 0.79%, respectively. Commodity weakness further pressured Brazilian heavyweights.
Among top performers, Klabin led gains, buoyed by strong third-quarter results, adjusted EBITDA highlights from Santander, and a R$318 million dividend payout.
Banco do Brasil rose 1% post-earnings, Itaú Unibanco climbed 1.66% amid sector stability, Bradesco advanced on banking resilience, and Suzano benefited from dollar strength.
On the downside, Embraer topped losses, reacting to U.S. tariffs despite in-line results per BTG Pactual; Cosan fell after pricing its R$9.06 billion share offering at R$5; Vale declined on commodity drags; Petrobras slipped similarly; and Raízen dropped amid energy sector headwinds.
As markets eye Copom's verdict, the Ibovespa's upward trajectory reflects robust fundamentals, though overbought signals hint at potential consolidation.
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