Brazil’s benchmark stock index edged down on Tuesday as external pressures weighed on risk assets and investors digested fresh domestic inflation figures, according to a report by Reuters.
At 10:40 a.m. in São Paulo, the Ibovespa fell 0.11% to 137,872.83 points, with a financial volume of R$1.23 billion. The move followed heightened political drama in the United States, where President Donald Trump ousted Federal Reserve governor Lisa Cook, citing alleged false statements on mortgage documents.
Trump’s decision was widely seen as part of a broader attempt to reshape the Fed and pressure the central bank into cutting rates. “The mortgage fraud allegations are likely not the real reason Cook is in the firing line,” wrote Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “She has been a vocal critic of the inflationary impact of tariffs, warning last June that ‘Trump-style tariffs’ would make the Fed’s job harder by pushing prices up and forcing policymakers to keep rates higher for longer. That is exactly the message Trump does not want to hear.”
Ozkardeskaya added: “Cook said she will not resign, but this latest episode in the U.S. political drama reignites concerns over the Fed’s independence and, by extension, undermines confidence in the U.S. as a global benchmark for transparent, rules-based capital markets.”
Inflation surprise in Brazil
On the domestic front, Brazil’s IPCA-15 index showed deflation of 0.14% in August, compared with a 0.33% rise in July. Economists surveyed by Reuters had projected a 0.19% decline. It was the first negative print in two years, helped by lower electricity bills due to the Itaipu bonus and falling food prices.
“Despite a string of more benign readings, the latest IPCA-15 came in weaker than expected,” said Leonardo Costa, economist at ASA Investments. “We maintain the expectation of gradual disinflation, but this print highlights that cooling remains uneven, particularly in services, reflecting sluggish domestic activity and labor market resilience.”
Corporate highlights
Petrobras (PETR3; PETR4) slid 0.55%, mirroring weaker oil prices as Brent crude dropped 1.41% to $67.83 a barrel. Sector peers also traded lower, with PetroReconcavo (RECV3) down 0.61% and Prio (PRIO3) losing 0.86%.
Vale (VALE3) gained 0.05%, despite iron ore futures in Dalian falling 0.7% to 776.5 yuan ($108.56) per tonne after Trump threatened new tariffs.
Raízen (RAIZ4) fell 0.95%, snapping a three-day winning streak, as concerns persisted over its debt levels.
Braskem (BRKM5) rose 1.65%, rebounding from recent pressure linked to Magnitsky Act sanctions and weak quarterly earnings.
GPA (PCAR3) extended gains, rising 1.99% after a nearly 9% surge on Monday. The move followed news that the Coelho Diniz family raised its stake to nearly 25% and called for an extraordinary general meeting to replace the entire board.
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