30.10.202621:17:06UTC+00Ibovespa Posts Worst Week Since Pandemic

The Ibovespa fell 0.7% on Friday, closing at 167,922 and extending its losing streak to a fifth consecutive session. It was the index’s worst weekly performance since March 2020, at the height of the pandemic. After rallying in early October on expectations of a government shift and fiscal consolidation, the market reversed course following Lula’s reelection, prompting the unwinding of those positions. Mounting concerns over public spending and the trajectory of public debt intensified the sell-off.

The adjustment hit hardest in sectors most exposed to credit conditions and household consumption. Banks retreated, with Bradesco and Itaú each dropping 2.1%. Steelmakers also suffered steep declines, led by CSN, which tumbled 8.5%.

In contrast, some heavyweights provided support. Vale, whose shares had slumped more than 11% over the month, gained 3.3% despite reporting a net loss in the third quarter, as its copper operations helped offset higher costs in iron ore and nickel. Petrobras advanced 1%, following the rise in international oil prices.

Over the week, the Ibovespa plunged 17.3%, bringing its loss for the month to 10%.