The Ibovespa, Brazil’s main stock market index, ended Tuesday’s trading session down by 0.74% at 131,446 points.
Falling stocks of major companies like Vale and Petrobras drove this decrease. Concurrently, the U.S. dollar rose by 0.70%, reaching R$ 4.90.
Vale’s shares dropped by 1.35%, and Petrobras’ preferred shares declined by 0.96%.
Vale’s fall is linked to the weakening iron ore prices due to China’s economic slowdown.
Despite rising oil prices, which benefited companies like 3R Petroleum and PRIO, Petrobras saw its stocks decline.
The banking sector in Brazil also faced losses. Bradesco’s shares fell by 2.69% after Goldman Sachs downgraded their rating.
Banco do Brasil experienced a 1.50% decrease in its stock value.
The most significant losses were recorded by steel companies Gerdau, falling by 4.79%, CSN with a 4.68% decrease, and Gerdau Metalúrgica, which dropped by 4.40%.
However, some companies like Locaweb, 3R Petroleum, and Trans Paulista went against the trend with gains.
CVC and Magazine Luiza also had a positive day.
In the United States, the stock market had a mixed closure.
The Dow Jones fell by 0.42%, the S&P 500 decreased by 0.15%, and the Nasdaq 100 edged up by 0.09%.
This mixed result comes after a significant rise the previous day, suggesting a possible continuation of the late 2023 rally.
Upcoming on Thursday are the U.S. inflation data for December and the total for 2023.
These figures are crucial as they are expected to influence the Federal Reserve’s next interest rate decision.
This decision will impact both U.S. and global stock markets, showing how interconnected these markets are.