13.10.202620:57:40UTC+00Ibovespa Drops as Inflation Forecast Rises

The Ibovespa fell 1% on Tuesday, closing at 206,887 points, pressured by declines in major banks, utilities, and mining stocks. The Focus survey raised its 2026 inflation forecast to 5.22% from 5.01%, the fourth consecutive upward revision, while the Selic benchmark interest rate remained unchanged at 13.25%.

The IMF cut its 2026 GDP growth forecast for Brazil to 2.2% from 2.4%, citing an expected slowdown in 2026–2027 driven by restrictive interest rates designed to bring inflation back to target, the withdrawal of fiscal stimulus, and heightened global uncertainty.

Among financials, major banks moved lower, with Itaú down 1.6% and Bradesco off 1%. In the utilities segment, Axia retreated 1.6%, while Sabesp slipped 3.1%. Mining stocks also weakened, as ample global supply, elevated Chinese inventories, and lower shipping costs continued to pressure iron ore prices, pulling Vale down 1.1%.

Moving against the broader trend, Petrobras advanced 1.5% as oil prices rebounded.