The Ibovespa edged down to trade below 161,000 on Monday amid losses for banks and utilities. Banking stocks were mostly flat, with Itaú near unchanged and Bradesco down 0.5%. Azul fell more than 2%, extending losses after plunging nearly 30% on Friday following the issuance of around 1.4 trillion new shares, which heavily diluted shareholders. Utilities underperformed, with Axia down 0.6% and Sabesp off 0.4%, while WEG (-0.3%), Ambev (-0.1%), and Rede D’Or (-0.5%) also lagged. In contrast, Petrobras rose 0.9% and Vale gained 0.6%, supported by higher oil and iron ore prices. Still, markets maintained their expectations that the Brazilian central bank will restart their rate cuts next year after the IPC-M price index unexpectedly eased from the previous month, instead of expectations of an increase, to reflect a 1.05% deflation rate this year.