The Brazilian stock market ended the week on a negative note, with Ibovespa declining by 0.13% influenced by Wall Street’s weakness. However, Vale’s strong performance limited the losses, helping to cushion the fall.
The US dollar strengthened against the Brazilian real, closing at R$ 5.7051, up 0.75% on Friday. Investors focused on corporate earnings reports in the domestic scenario, leading to a weekly decline of 0.46% for the main index.
Renato Gomes from the Central Bank expressed concerns about the government’s fiscal policy, citing increased deficit forecasts for state-owned companies and doubts about meeting the zero-deficit target for 2025.
Vale’s Q3 Results and Market Reactions
Vale reported a 15% year-over-year drop in net profit to $2.4 billion in the third quarter, surpassing Bloomberg’s consensus estimate. Usiminas and Suzano also saw gains, while CVC stood out as the top performer among Ibovespa components.
Petrobras advanced with oil prices, CVC topped the gains, and Hypera led the losses. With market volatility expected to increase, investors are closely watching corporate earnings, economic data, and the US presidential election.