FX.co ★ Ibovespa Slips as Ahead of Tariff Deadline

The Ibovespa index decreased by 1.1%, ending the session just above the 132,000 mark on Monday. This decline reflects investors' cautious approach as they lessen their exposure to riskier assets in anticipation of the U.S. tariff deadline on August 1. President Trump has issued a threat to implement a 50% tariff on Brazilian imports, accusing Brazil of politically persecuting former President Bolsonaro and engaging in unfair trade practices, despite the fact that the U.S. currently enjoys a trade surplus with Brazil. These tensions are exacerbated by broader tariff threats directed at BRICS nations. Within Brazil, focus remains on the internal conflict between the executive and legislative branches concerning a proposed increase in the financial transaction tax. In the corporate sector, shares of Vale declined 1.1%, and significant banks also saw losses; Bradesco fell by 1.1%, Itaú Unibanco decreased by 2.1%, and Banco do Brasil dropped by 1.3%.