Overview

• The index closed down 1.08% at 143,950 on Oct. 2 after a 0.49% drop the prior session, while the dollar hovered near R$5.33.
• Traders pointed to headlines about studies for nationwide free bus fares as a trigger for higher risk premia, lifting real‑rate bond yields and pushing juros futuros up.
• Market participants warned the proposal could carry sizable fiscal costs, though local reporting indicated its near‑term approval appears unlikely.
• Investors also monitored the income‑tax exemption plan for wages up to R$5,000 and a firm central‑bank stance with the Selic at 15%.
• External cues were supportive as weak U.S. private‑jobs data and the federal shutdown bolstered expectations of further Fed cuts, helping Wall Street set fresh records.