The Ibovespa advanced 0.5% on Tuesday, closing at 183,828, as evidence of a gradual cooling in the labor market supported credit-sensitive sectors. Brazil created 165,827 formal jobs in August, beating expectations of 95,700 and accelerating from 58,568 in July, the strongest result since March. The unemployment rate came in at 5.3% in the rolling quarter through August, in line with forecasts.
Despite the robust payroll figures, the data remains consistent with a scenario of a gradual labor-market slowdown, in line with expectations for near-flat GDP in the third quarter of 2026. Yields declined, as the numbers did not alter market bets on the continuation of the Selic easing cycle.
Financials outperformed, with BB rising 2.6% and Itaú gaining 1.4%. Utilities also moved higher, led by a 0.7% increase in Axia. Petrobras climbed 0.8% despite weaker oil prices.
On the downside, Vale fell 2.2% as iron ore prices retreated, while CSN Mineração dropped 5.7% after announcing a temporary curtailment of low-grade iron ore production. Steelmakers also came under pressure, with CSN plunging 9.8%.
