By Brazil Stock Guide – Brazil’s Ibovespa index experienced moderate fluctuations on Wednesday, driven by declines in major stocks such as Petrobras (PETR3) and Ambev (ABEV3), while Cosan (CSAN3) and B3 (B3SA3) led the positive momentum. By 12:20 p.m., the index was down 0.31%, at 139,906.52 points, with a daily range between 139,810.65 and 140,495.88 points, and a trading volume of R$ 5.95 billion, Reuters reported.
Economic data released by IBGE showed a 0.2% decline in industrial production in July compared to June, though there was a 0.2% year-on-year growth, in line with analysts’ expectations. This data continues to signal a slowdown in economic activity, primarily attributed to the restrictive monetary policy. According to Sara Paixão, analyst at InvestSmart XP, “The figures do not change the outlook that the Central Bank will keep the Selic rate at 15% during the next Copom meeting, but they reinforce the view that the interest rate cutting cycle could start in early 2026.” She added, “To solidify this projection, it will be important to monitor upcoming inflation and economic activity data.”
In Brasília, the spotlight remains on the ongoing trial of former President Jair Bolsonaro in the Supreme Federal Court (STF) for his alleged involvement in an attempted coup. The trial has drawn attention from both domestic and international markets, with concerns over potential retaliatory measures from the United States. Alison Correia, co-founder of Dom Investimentos, noted that “The sentence is imminent, but the key question is its magnitude.” The case has led U.S. President Donald Trump to impose a 50% tariff on Brazilian exports, while the U.S. government has taken actions against STF Justice Alexandre de Moraes, the judge overseeing the trial.
Meanwhile, global markets are also reacting to economic data from the U.S., where the S&P 500 rose 0.43%, reflecting a moderation in job openings for July, signaling easing conditions in the U.S. labor market.
Among individual stock movements, Petrobras (PETR3) was down 0.83%, influenced by a 2.21% drop in Brent crude prices, which fell to $67.61 per barrel. Vale (VALE3) also saw a slight decline of 0.14%, despite a rise in iron ore prices in China. Meanwhile, B3 (B3SA3) outperformed the broader index with a 1.65% gain, driven by strong performance in the financial sector.
The retail sector showed mixed results, with C&A (CEAB3) up 1.56%, benefiting from falling interest rate expectations, while RD Saúde (RADL3) dropped 2.07% due to growing competition concerns in the pharmaceutical retail market.
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