On Wednesday, Brazil’s main stock index, Ibovespa, dropped 0.46% to close at 130,841 points, mainly due to key stocks underperforming.
Vale, a major mining company, saw a 1.50% downturn, marking its eighth straight session, a trend last seen in May 2022 due to lower iron ore prices in China.
Brazil’s state oil firm, Petrobras, also saw a decrease in its stock value. Falling global oil prices and higher-than-expected oil reserves in the United States influenced this.
Smaller oil companies also faced losses. One such company saw its stock value decrease by 4.17% and another by 0.42%.
Enauta, an energy company, initially saw an increase but ended the day 1.39% lower.
In the energy sector, Petrobras decided not to extend its brand license contract with Vibra, an energy firm. This decision led to a 0.80% rise in Vibra’s stock value.
Gerdau, a steel manufacturing company, also experienced a notable decline. Its stock fell by 2.98%, continuing the previous day’s downward trend.
Metalúrgica Gerdau, its affiliate, saw a decrease of 1.96%.
In the banking sector, Itaú Unibanco ended the day slightly lower by 0.09%. Banco do Brasil saw a minor drop of 0.17%, while Bradesco experienced a larger fall of 1.72%.
Other sectors also saw declines. Azul, an airline company, dropped 0.88% despite an increase in passenger traffic.
Hypera, a pharmaceutical company, went down 0.93% following a rating and target price cut.
In contrast to Ibovespa, the New York Stock Exchange showed modest gains. Both markets are now awaiting the upcoming inflation reports from the United States and Brazil.
The Brazilian real also slightly weakened, closing at R$ 4.8919 against the U.S. dollar.