Brazil’s Ibovespa fell on Wednesday, pressured by a 2.5% drop in oil prices and concerns following the liquidation of Banco Master, which triggered losses across the banking sector.
Local outlet InfoMoney reported that, in the absence of major catalysts, the session was likely to be marked by low liquidity and elevated volatility.
Analysts noted that two key events — Nvidia’s earnings and the postponed US September payroll report — will be released while Brazilian markets are closed.
A national holiday on Thursday is expected to further limit trading activity, reinforcing a defensive stance among investors.
“As a result, a climate of risk aversion is to be expected. The key fundamentals for the week are scheduled to come out while the market here is closed,” said Matheus Spiess, analyst at Empiricus Research. “On Friday, we will have a catch-up in the markets.”
Global caution intensifies as major data looms
Caution signs were evident across global markets on Wednesday. Brazil’s B3 benchmark has gained 4.27% so far in November as of late morning, though analysts warned the session could see some corrective moves.
US stocks were modestly higher, but major European indexes traded in the red, extending a broader pattern of risk aversion ahead of key data releases in both regions.
In Brazil, Thursday’s national holiday adds another layer of complexity for investors.
The US September payroll report will be released while local markets are closed, and Nvidia’s earnings will land after the US close, leaving domestic traders unable to react until Friday.
Alongside renewed concerns about a potential valuation bubble in the technology sector, investors are weighing whether the upcoming jobs report will reinforce expectations for further US interest rate cuts.
Banco Master liquidation ripples through the financial sector
Attention also remains centred on the fallout from the closure of Banco Master, which led to the arrest of its owner, Daniel Vorcaro.
Preliminary estimates indicate that large banks will need to make additional contributions to the Credit Guarantee Fund (FGC) in the coming weeks to absorb the shortfall left by Master.
The FGC — responsible for protecting depositors in the event of a financial institution’s failure — expects that out-of-court disbursements tied to Banco Master, Banco Master de Investimento, Banco Lestsbank, and Master Exchange Broker will total roughly R$41 billion.
Index performance and key movers
On Tuesday, the Bovespa Index closed at 156,522.13 points, a decline of 0.30%.
By 11:08 am on Wednesday, the index was down 0.35% at 155,973.62 points, trading near the intraday low after opening the session virtually flat.
Losses were broad-based across major commodity and financial stocks.
Vale slipped 0.26% despite firmer iron ore prices in China, while Petrobras fell between 0.70% and 0.87%.
Among top lenders, Itaú Unibanco and Bradesco each dropped close to 0.60%.
In the metals segment, CSN was the sole gainer, rising 0.25%.
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