Overview

• Ibovespa fell 0.49% to 145,517, while the dollar ended up 0.11% at R$5.3285 after a volatile session.
• ADP reported a loss of 32,000 U.S. private-sector jobs and the federal shutdown began, pushing the dollar below R$5.30 intraday before the move faded.
• Domestic caution persisted with the Chamber set to vote on expanding the income-tax exemption to R$5,000 and surveys showing improved approval for President Lula, keeping futures rates slightly higher.
• Despite today’s pullback, the index is up 21.58% in reais and 41.1% in dollars this year after eight nominal records in September, helped by cheaper valuations and roughly R$26 billion in foreign inflows.
• Global risk appetite diverged as Europe’s FTSE 100 and Stoxx 600 notched record closes and the S&P 500 finished above 6,700 points, even with the U.S. government shutdown underway.