Brazil’s benchmark Ibovespa index posted modest losses in early trade on Monday, as Braskem led declines following its announcement of a debt restructuring process.
The Bovespa slipped 0.24% to 171,444.43 points by 11:05 a.m. in São Paulo, after touching an intraday low of 169,330.39 and a high of 172,202.06. Trading volume totaled R$5.56 billion, below the previous session’s turnover. Last Friday, the index closed up 1.85% at 171,031.73, capping a weekly gain of 2.45%.
Braskem’s shares fell 3.75% after its board approved an extrajudicial recovery process to restructure approximately $10.9 billion in debt. The move follows reports of financial strain at the petrochemical company and its subsidiaries.
Other movers included education group Yduqs, which surged 12.45% on reports of early-stage talks with Afya regarding a potential business combination. Usiminas preferred shares rose 4.43% after a local column suggested controlling shareholder Ternium was considering taking the company private. Ternium did not immediately respond to requests for comment. CSN, which holds a stake in Usiminas, advanced 6.05%.
The banking sector showed mixed performance, with Itaú Unibanco up 0.65%, Bradesco rising 0.86%, Banco do Brasil gaining 0.87% and Santander Brasil up 1.29%. Petrobras declined 2.91% as international oil prices fell. Vale rose 2.49%, supported by firmer iron ore futures in China and expectations of stronger demand ahead of the September construction season peak.
Analysts at BB Investimentos noted that downward pressure persisted as the index remained below its 200-day moving average, though a short-term attempt to break above the 21-day exponential moving average was observed. They highlighted that foreign flows remain a key tactical driver for the index amid volatility tied to the electoral period and fluctuations in U.S. Treasury yields.
U.S. markets opened lower, with the S&P 500 down 0.39% and the 10-year Treasury yield at 4.6981%, compared with 4.738% on Friday. Investors are awaiting key signals from the Federal Reserve’s Jackson Hole symposium later in the week, including remarks from Chair Kevin Warsh scheduled for Friday.
