FX.co ★ Ibovespa Edges Lower on Tuesday

The Ibovespa saw a slight decline, closing at 135,250 on Tuesday, as investors found themselves in a holding pattern due to mixed signals from Brazil's fiscal discussions and shifts in US trade policy. On the domestic front, the market was focused on the Brazilian Supreme Court’s crucial hearing regarding proposed changes to the IOF, which, if approved, could impact banks' funding costs and consumer credit demand. Additionally, ongoing interministerial discussions were being held concerning the US's imminent threat of a 50% tariff on Brazilian exports. Earlier in the day, the Brazilian government issued a decree pertaining to the Economic Reciprocity Law, paving the way for potential retaliatory actions against US trade initiatives. The index was weighed down by key commodity stocks, with Petrobras decreasing by 1.1% as oil futures retreated from last week's peaks, and Vale dropping by 2.7% due to weaker Chinese iron ore import figures. However, these losses were partially compensated by gains from major banks such as Banco Do Brasil and Santander, which rose by 1.7% and 1.2% respectively, while B3 also saw an uptick of 1.7%.