The Ibovespa, Brazil’s primary stock market index, saw a decline of 0.55% on Tuesday, landing at 116,171 points, marking its worst consecutive drop since 1984 with 11 straight falls.
One significant driver of this decline was Petrobras’s announcement of gasoline and diesel price adjustments.
Additionally, international news played a role.
Though the fuel price hike benefitted Petrobras shares, experts raised their inflation forecasts.
Tensions between Finance Minister Fernando Haddad and the Speaker of the House, Arthur Lira, negatively impacted investor sentiment.
On a global scale, China’s economic figures came in lower than anticipated, stoking fears of an economic downturn in the world’s second-largest economy.
Retail expectations in China stood at a 4.4% increase, yet July saw only a 2.5% rise compared to the same month in 2022.
Industrial output increased by 3.7%, less than the projected 4.6%.
Conversely, investor eyes turned to the U.S., where economic figures exceeded expectations.
This heated economy sparks concerns that the Federal Reserve might be inclined to raise interest rates.
The Fed will soon release minutes from its latest meeting, which may offer insights into its upcoming monetary policy decisions.
Lastly, the dollar pressured the Brazilian real due to international caution.
The U.S. currency appreciated by 0.43% against the real, closing at R$ 4.98 on Tuesday.