Brazil: Ibovespa Closes Lower as Fed Hike Bets Rise.

The Ibovespa inched lower to close at 185,147 on Friday amid rising expectations for a US Fed rate hike in September. US payrolls increased by 162,000, about three times the consensus estimate, boosting rate hike bets. For Brazil, persistently high interest rates in the world’s largest economy narrow the policy path available to the BCB. The prospect of US interest rates remaining elevated for longer also reduces appetite for risk assets in emerging markets. Underperformers included Axia, down 0.8%, WEG, down 0.6%, and Rede D’Or. Petrobras lost 0.9% despite elevated oil prices, which remained volatile. Fnancial stocks gains limited losses, with Bradesco up 0.6%, Itausa adding 1.5%, BB Seguridade rising 1.1%, and Caixa advancing 1.1%. The latest Datafolha poll on the presidential race, released on Thursday, showed President Lula’s lead over Flavio Bolsonaro narrowing. Embraer rose 1.1% as Brazil posted a stronger-than-expected external trade surplus. The index rose 5.4% on the week.