The Brazilian stock market, Ibovespa, experienced a downturn on Tuesday.
Investors reacted to Chinas new stimulus package, which disappointed market expectations.The index closed 0.38% lower at 131,514.03 points, according to preliminary data.
Chinas government announced plans to advance 100 billion yuan ($14 billion) from its 2025 investment budget.They also allocated another 100 billion yuan ($14 billion) for construction projects.
The government will continue issuing special ultra-long-term bonds for the coming year.Market analysts had anticipated a much larger package, potentially worth trillions of yuan.
Concerns about slowing economic indicators in China for September added to the markets unease.Brazilian Stock Market Declines as Chinas Stimulus Package Falls Short.
(Photo Internet reproduction)These factors caused iron ore and oil prices to plummet by over 4%.
The price drops heavily impacted shares of Vale and Petrobras, two major Brazilian companies.Vale, a mining giant, saw its stock fall by 3.11%.
Petrobras, the state-owned oil company, experienced a 2.06% decline.In Brazil, attention turned to Gabriel Galpolos hearing before the Senates Economic Affairs Committee.
Galpolo, nominated for the presidency of the Central Bank, addressed the committee.He assured senators that President Lula guaranteed his decision-making freedom in leading the institution.
Galpolo emphasized that his role would be guided solely by commitment to the Brazilian people.He noted that recent conversations with senators also focused on ensuring management independence.
Analysts expect his approval for the Central Bank presidency to proceed without major obstacles.Despite the overall market decline, some companies saw significant gains.
Azul, a Brazilian airline, closed 8.35% higher after reaching a 3 billion reais agreement with creditors.Cogna, an education company, surged 11.90% following a positive review from Bradesco BBI.
Mining companies felt the impact of falling iron ore prices.
CSN dropped 4.62%, while CSN Minerao fell 3.34%.Oil companies also suffered from commodity price declines.
Prio decreased by 2.70%, and PetroRecncavo fell by 2.05%.Brazilian Stock Market Declines as Chinas Stimulus Package Falls Short