FX.co ★ Brazilian Stocks Decline Amid Unfavorable External Backdrop

The Ibovespa fell 0.5% to below 168,000 points, reversing earlier gains as a sharp selloff on Wall Street weighed on global equity markets. Shares of companies tied to semiconductors and data centers came under pressure after Democratic gains in the US midterm elections fueled concerns about tighter regulation of the rapid expansion of AI. At the same time, investors remained focused on Brazil’s fiscal outlook, particularly the government’s commitment to reining in public spending and debt, which have risen sharply in recent years. The BCB left the Selic rate unchanged at 13.75% at its November meeting, against a challenging backdrop of weaker growth, higher inflation, and heightened uncertainty following President Lula’s reelection. Losses were broad-based, led by WEG (-4%) and Embraer (-5%), while Petrobras and Bradesco each slipped 1%. In contrast, Vale advanced nearly 1%, supported by higher iron ore prices.