Overview

• The Ibovespa fell 1.57% to 141,356, its lowest close since September 4, marking a second straight session of correction.
• The real weakened to R$5.3501 as the Dollar Index rose and long-end DI futures climbed, with the Jan-2031 rate up to about 13.65%.
• Investors flagged the dilution of MP 1.303—now estimated by Finance Minister Fernando Haddad to raise R$17 billion in 2026—as a risk to revenue and longer-dated Treasury issuance.
• Haddad said the Finance Ministry is mapping the public transport sector at President Lula’s request in view of potential tarifa zero, which added to market caution.
• External pressures included the seventh day of the U.S. government shutdown, softer tech-led Wall Street, and political turmoil in France, while a congressional committee approved the MP text in the evening ahead of an Oct. 8 deadline.