Cooling Inflation Lifts U.S. and European Stocks to Records as Brazil Yields Fall

Overview

• U.S. CPI for September rose 0.3% month over month and core 0.2%, both below forecasts, bolstering expectations for further Federal Reserve rate cuts.
• Wall Street’s Dow, S&P 500 and Nasdaq notched record closes, and Europe’s Stoxx 600 and London’s FTSE 100 set new closing highs.
• Brazil’s IPCA‑15 advanced 0.18% in October versus a 0.24% median estimate, pulling 12‑month inflation to 4.94% and shifting pricing toward Selic cuts beginning in January.
• Brazilian fixed‑income rallied as DI and real yields fell for a fifth straight session, while the Ibovespa closed up about 0.3% on thin turnover.
• The dollar ended near R$5.39 after modest swings; for Oct. 27 the central bank plans up to US$1 billion in spot sales and up to US$1 billion in reverse swaps, with investors also eyeing a wider current‑account deficit, strong FDI and upcoming Trump–Lula and Trump–Xi meetings.