Brazilian Stock Market Slides Ahead of U.S. Tariff Deadline
Brazil’s main stock index, the Ibovespa, declined 0.4% on Monday, falling below 141,000 points, as investors adopted a cautious stance ahead of the U.S. reciprocal tariff deadline. Uncertainty surrounding the measure — and the potential for a last-minute reversal by former President Donald Trump, as seen in the past — created a prevailing “wait-and-see” sentiment in the market.
Recent statements from Trump took a more aggressive tone, warning that BRICS-aligned countries could face an additional 10% tariff, further pressuring emerging market assets, including Brazil.
Market Highlights:
-
Vale: -0.3%
-
Petrobras: -0.3%
-
Americanas: +0.7%
-
Magazine Luiza: -0.2%
-
Embraer: +0.1%
-
Eletrobras: flat
-
Major Banks: little movement, mostly stable
On the domestic front, a political standoff between Brazil’s Executive and Legislative branches over the IOF (Financial Transaction Tax) remains a source of concern and continues to weigh on investor sentiment.
The combination of external tensions and internal fiscal disputes sets the stage for continued volatility in Brazilian markets, with investors watching closely for developments on both the global trade front and local tax policy.
Source: Trading Economics
-
NEWSROOM
