Brazil’s Ibovespa closed at 185,147 on Friday, edging lower as expectations grew that the U.S. Federal Reserve could raise interest rates in September. U.S. payrolls increased by 162,000, roughly three times the consensus estimate, strengthening bets on a rate hike. Persistently high interest rates in the world’s largest economy narrow the policy options available to the BCB (Brazil’s central bank) and reduce appetite for emerging-market risk assets. Axia fell 0.8%, WEG declined 0.6% and Rede D’Or also underperformed. Petrobras lost 0.9% despite elevated but volatile oil prices. Gains in financial stocks helped contain the decline, with Bradesco rising 0.6%, Itaúsa gaining 1.5%, BB Seguridade advancing 1.1% and Caixa increasing 1.1%. Embraer rose 1.1% after Brazil reported a stronger-than-expected external trade surplus. The latest Datafolha poll, released Thursday, showed President Lula’s lead over Flávio Bolsonaro narrowing. The Ibovespa gained 5.4% over the week.