Global Stocks Pause After In-Line U.S. CPI as Brazil’s Banks Drop and Petrobras Jumps

Overview

• U.S. consumer prices rose 0.3% in December with core up 0.2%, leaving annual inflation at 2.7% for 2025 and little change in rate-cut expectations.
• Wall Street finished lower after an early lift faded, with the Dow down 0.80%, the S&P 500 off 0.19%, and the Nasdaq slipping 0.10%.
• European benchmarks closed near flat after the CPI, as risk appetite was checked by Greenland’s push for NATO-managed defenses and new U.S. tariff threats tied to Iran.
• Brazil’s Ibovespa fell 0.72% to 161,973, pressured by declines in major bank stocks, while Petrobras rallied strongly and Vale advanced, limiting losses.
• Analysts cited higher oil futures and possible technical short-covering as drivers of Petrobras’ gains, contrasting with broader weakness in domestically focused shares.