Jun. 3 at 11:51 PM
Foreign investors pulled a record 14.9 billion reais (
$2.9 billion) from Brazil’s B3 stock exchange in May, marking the first month of net outflows this year and ending a strong run for Brazilian equities. The withdrawals contributed to the Ibovespa’s seventh consecutive weekly decline, its longest losing streak in more than two decades.
The outflows reflect a shift in global capital toward U.S. and developed-market assets, driven by enthusiasm for AI-related stocks, strong corporate earnings, and geopolitical uncertainty linked to the conflict in the Middle East. Higher oil-price volatility has also raised concerns that Brazil’s monetary easing cycle could be shorter than previously expected.
Despite the recent weakness, strategists at UBS and XP view the selloff as a temporary setback rather than a lasting reversal. They expect foreign flows to recover as geopolitical tensions ease and AI-driven market exuberance moderates.
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