01.09.202520:19:51UTC+00Ibovespa Slips from Record High

On Monday, the Ibovespa slipped by 0.1% to settle at 141,283, retreating from its record peaks as the market evaluated the rate outlook from Brazil's Central Bank (BCB). Anticipations for the second quarter GDP data, set to release on Tuesday, indicate a significant slowdown in growth to 0.3%, a decline from the 1.4% observed in the first quarter. This development underscores concerns regarding the economy's momentum under the strain of a prolonged 15% Selic rate. Policymakers remain committed to maintaining these high rates to stabilize inflation expectations close to the 3% objective. Additionally, the August Purchasing Managers’ Index (PMI) reveals Brazil's industrial sector experiencing its sharpest contraction in two years, pressured by subdued demand and the ramifications of new tariffs imposed by the United States. These factors highlight the challenges faced by manufacturers and exporters. Furthermore, political uncertainties are resurfacing as Brazil's Supreme Court initiates the high-profile trial of former President Jair Bolsonaro, casting doubts over the country’s institutional stability and its diplomatic ties with Washington. Notable declines were observed in Petrobras, which fell by 0.6%, Banco do Brasil by 1.4%, and Companhia Sanea by 0.7%.