FX.co ★ Brazilian Stocks Inch Down from Record

Brazil's Ibovespa index retreated below the 163,000 level on Monday, after flirting with record highs the previous week. This decline reflects ongoing market analysis regarding the future of domestic borrowing costs. Financial institutions were the main losers in the session; notably, Bradesco, Banco do Brasil, and Itau fell between 1.5% and 0.5%. This downturn is influenced by the uncertain prospects for Brazilian credit this year, driven by persistent core services inflation and historically low unemployment rates, both of which may restrict the central bank's ability to reduce rates in forthcoming meetings. Meanwhile, major commodity players like Petrobras and Vale remained largely unchanged, hovering around the flatline.