Brazilian Stocks to End Week with Gains

The Ibovespa rose by 0.8% to above the 120,000 level on Friday, rebounding from marginal losses the previous session as investors welcomed evidence of slowing inflation in the Brazilian economy.

The headline rate dropped more than expected to 4.82% in October, the first deceleration in the IPCA since June, to signal that higher borrowing costs are curbing unsustainable price growth.

Brazil’s inflation gauge gave investors optimism and the BCB support to extend their dovish trajectory, increasing risk aversion.

On the corporate front, Petrobras shares edged below the flatline after lower oil prices resulted in a sharp profit decline from the previous year, although lower outstanding debt balanced the pessimism.

Meanwhile, iron ore mining giant Vale benefited from higher demand and supply risks for the commodity, increasing prices and bringing shares up by 1.22%.