The Ibovespa closed down 0.4% on Thursday, at 175,063 points, pressured by expectations of higher interest rates. Brazil’s IGP-M inflation index rose 0.84% in May, slightly above forecasts, while Citi revised its year-end Selic rate projection to 13.75% from 13.25%.
On the labor front, the unemployment rate fell to 5.8% in the rolling quarter through April, below market expectations and marking the lowest reading on record for this period.
Rate-sensitive stocks dragged the index, with Itaú down 0.8% and Bradesco losing 0.6%. Petrobras also slipped 0.7%, pressured by expectations of a normalization in oil flows through the Strait of Hormuz amid reports that the United States and Iran agreed on a proposal to extend their ceasefire, pending approval from the U.S. president.
