US inflation surprise sparks risk-off; Ibovespa drops, dollar hits R$5.05

Stronger-than-expected US September inflation triggered risk aversion, with the Ibovespa falling below 204,000 points, the dollar rising to R$5.0551, and Brazilian future rates up over 10bp, mirroring Treasury yield surge. Investors are repricing odds of a Fed rate hike this month. The move signals a global shift toward risk-off and dollar strength, pressuring emerging markets.