FX.co ★ Ibovespa Rebounds on Tariff Pause

On Wednesday, the Ibovespa index surged by 3.1%, closing at 127,796, after recovering from nearly a month-long low. This recovery followed President Trump's announcement to temporarily suspend reciprocal tariffs for 90 days for most countries, while maintaining a 125% tariff on China. This change in policy alleviated trade tensions, rejuvenating global risk appetite and boosting investor sentiment. The stabilization of oil prices further supported Brazil's export prospects and domestic economic fundamentals. Although uncertainties surrounding the broader trade conflict persist, the reduction in tariff pressures has recalibrated market expectations and fostered a more optimistic outlook for Brazilian stocks. Leading the market’s rebound were prominent blue-chip corporations, with significant gains posted by Petrobras (+3.5%), Ambev (+3.4%), Vale (+5%), WEG (+3.3%), and JBS (+3.9%).