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After U.S. Shutdown Ends, Data Gaps Keep Markets on Edge as Brazil Shows Softer Signals

Brazilian assets react to softer retail data alongside a weak Banco do Brasil quarter.

Overview

  • The 43-day U.S. government shutdown ended after President Donald Trump signed reopening legislation, but the White House said October CPI and payroll reports may never be released.
  • U.S. stocks fell at the open with technology shares under pressure as investors waited for delayed economic releases, and major European indexes also closed lower.
  • Brazil’s retail sales slipped 0.3% in September versus August, missing forecasts and reinforcing expectations that the central bank could bring forward rate cuts.
  • Banco do Brasil reported adjusted third-quarter net income of R$3.785 billion, a 60.2% year-on-year drop tied to higher provisions and delinquency in agribusiness, and its shares fell nearly 4%.
  • The Ibovespa closed down 0.30% at 157,162.43 and the dollar rose 0.10% to R$5.2975 against the real, even as oil and iron ore prices firmed.