The Brazilian stock market experienced its sixth consecutive day of declines, with the Ibovespa index falling 0.17% to 123,171 points, shedding 217 points in the process.
The trading session started on a positive note, with the index briefly climbing to 125,000 points, but it soon reversed these gains, continuing its downward trend.
This marked the longest stretch of losses since a record 13-day decline in early August 2023. Meanwhile, the commercial dollar saw a decline of 0.50% to R$5.24, halting its recent upward trend.
Ibovespa drop driven by lingering fiscal worries, amplified by remarks from Roberto Campos Neto, Central Bank of Brazil President.
At an IMF event, Campos Neto discussed challenges from a worsening global landscape and rising fiscal risks in Brazil.
He stressed the importance of maintaining transparency in fiscal policy adjustments to minimize damage to the nation’s financial credibility.
Additionally, the latest U.S. crude oil inventory data revealed an unexpected increase of 2.735 million barrels, reaching a total of 459.993 million barrels—surpassing analysts’ predictions.
This rise further complicates the dynamics of the global oil market, reflecting the broader economic uncertainties currently at play.
These factors are contributing to ongoing volatility and shaping a cautious outlook for Brazil’s financial markets in the near future.