FX.co ★ Ibovespa Dips as Commodities Weigh

On Friday, the Ibovespa index dipped slightly to approximately 182,500, influenced by declining commodity prices and the United States' selection of a more fiscally conservative Federal Reserve chair. Petrobras experienced a near 1% drop as oil prices declined, alleviating previous concerns about potential supply interruptions in Iran. Concurrently, Vale saw a decrease of about 2% due to lower iron ore prices and faced punitive measures and partial operational suspensions after incidents of water and sediment leaks. In contrast, utility companies outperformed, with Axia and Sabesp both appreciating around 1%. Rede D’Or experienced nearly a 2% increase, spurred by a favorable Santander report emphasizing its robust market-share growth potential. Additionally, Ambev inched up by 0.5%, and Vivo rose by 0.7%. The banking sector provided some stability, as Itaú and Bradesco both posted gains of approximately 0.4%. From a macroeconomic perspective, Brazil’s gross public debt slightly decreased to 78.7% of GDP in December from 79.0% in November, while the unemployment rate remained steady at 5.1%, aligning with expectations.