Brazil's stock market falls 2.50% after inflation data

The São Paulo stock exchange experienced a sharp 2.50% decline on Tuesday, extending its losing streak to six consecutive sessions. The Ibovespa, Latin America's benchmark stock market index, closed at 167,874 points after a day of consistent losses. The downturn was triggered by the release of Brazil's July inflation data, which registered a 4.44% annual rate. While this represents a slight deceleration from the previous month, the figure exceeded market expectations. This news was met with investor apprehension, as it raises concerns about a potential slowdown in interest rate cuts. The current interest rate stands at 14%, and a slower reduction could dampen consumer spending and hinder the overall growth of the Brazilian economy. Among the most traded stocks, state-owned oil company Petrobras saw its preferred shares lose 1.42%, despite rising global oil prices due to the conflict in Iran. The sell-off was widespread, affecting 73 out of the 79 stocks in the Ibovespa index. Steelmaker Usiminas experienced a significant drop of 7.26%. However, a few exceptions bucked the trend. Santander bank's shares rose by 0.65%, and cosmetics company Natura saw a 1.86% increase, marking the best performance of the day. In currency markets, the Brazilian real depreciated by 1.03% against the dollar, which closed at 5.16 reals for buying and selling.