Brazil's Ibovespa index was little changed in early trade on Tuesday, as losses in Petrobras offset modest gains elsewhere, with the benchmark down 0.08% to 171,776.99 points by around 11:50 a.m. local time.
The financial volume reached R$6.99 billion, while the U.S. S&P 500 edged up 0.1% and 10-year Treasury yields fell to 4.6485% from 4.704% the prior session.
Petrobras' preferred shares led decliners, falling 1.95%, pressured by softer international oil prices and uncertainty surrounding Braskem's debt restructuring. Braskem's preferred stock tumbled 6.34% after the company filed for extra-judicial recovery to restructure $10.9 billion in debt. B3 announced Braskem's shares would be removed from stock exchange indices at closing prices on Tuesday.
Financial flows showed a net foreign inflow of R$1.76 billion on Friday, helping lift the Ibovespa by 1.85% in that session. For August, the month-to-date negative balance narrowed to R$21.44 billion.
Among other movers, Hapvida's common shares fell 3.77%, extending a monthly decline of nearly 46%, as Squadra reduced its stake to 3.87% of the company's shares. Yduqs dropped 3.6% following a 13% surge the prior day, after confirming preliminary talks with Afya regarding a potential business combination.
Vale's common shares rose 0.78% after CEO Gustavo Pimenta said the company sees potential to expand iron ore production capacity by up to 50 million tons per year if it advances exploration in the "block C" region of Carajás, Pará.
Usiminas' non-voting shares fell 2.25% after adjusting from a prior gain of around 9%, following reports of a potential take-private plan by controller Ternium, which stated it had not approved any such operation.
Other notable moves included Direcional ON up 4.23%, Cury ON up 3.73%, and Localiza ON up 2.14%. Financials were mixed, with BTG Pactual Unit up 1.43%, Bradesco PN up 0.92%, and Banco do Brasil ON up 0.91%, while Itaú Unibanco PN edged up 0.13%, Santander Brasil Unit fell 0.4%, Gerdau PN declined 0.5%, and CSN ON dropped 3.1%.
