12.01.202621:22:23UTC+00Ibovespa Closed Marginally Lower

On Monday, Brazil's leading index, the Ibovespa, slipped to 163,150, retreating from the record highs achieved last week as investors re-evaluated the prospects for domestic borrowing costs. The decline was driven by downturns in the utilities and financial sectors. Notably, Companhia Sanepar saw a 3.7% drop, Axxia decreased by 0.9%, and Equatorial Energia dipped by 1.4%. The banking sector further contributed to the overall downturn; Bradesco, Banco do Brasil, and Itaúsa experienced losses ranging from 0.6% to 1.1%. This decline was rooted in ongoing uncertainty around credit conditions, which, coupled with persistent service sector inflation and historically low unemployment rates, constrains the Central Bank's ability to implement deep rate cuts in upcoming meetings. However, these losses were partly mitigated by advances in industrial exporters. WEG increased by 1.8%, Embraer climbed 2.2%, and Suzano rose by 1.8%. The major commodity players, Petrobras and Vale, remained relatively stable, showing little change.