São Paulo stock exchange drops 3.08% weekly amid interest rate and earnings fears

Brazil's main stock exchange, the Ibovespa, closed the week down 3.08%, reflecting investor concerns over potential interest rate cuts, corporate financial results, and Middle East tensions. The benchmark index fell 1.73% on Friday alone, ending the session at 172,513 points, marking its fourth consecutive decline. The performance contrasted with international markets, which reacted positively to weaker U.S. employment data. On the currency front, the Brazilian real saw a slight appreciation of 0.46% against the dollar, closing at 5.107 reals per dollar, though it remained nearly stable for the week. The retail sector was a significant drag on the market, with shares of department store chain Casas Bahía plummeting 8.86% and clothing retailer Lojas Renner falling 8.09%. Petrobras shares also weighed on the index, with both ordinary and preferred shares declining after the state-controlled oil company announced it would distribute only the minimum dividend to shareholders, despite reporting record profits of $10.4 billion in the second quarter. Conversely, gains were seen in footwear company Alpargatas and diagnostic medicine firm Fleury. Trading volume on Friday exceeded 18.9 billion reais.