FX.co ★ Ibovespa Posts Strong Gains on Wednesday

On Tuesday, the Ibovespa index experienced a 1.1% increase, closing at 135,501, in response to favorable movements in the global markets. This uptick was primarily driven by a newly announced trade agreement between the United States and Japan, which positively impacted Brazil’s trade-oriented and commodity-intensive sectors. President Trump's announcement of a significant deal with Japan, which involved reducing auto tariffs to 15% in return for a pledged investment of USD 550 billion, coupled with his engagement with European Union negotiators, heightened the probability of additional U.S. trade agreements before the August 1st deadline. This development directly benefited exporters such as Petrobras, which saw a 2.5% rise. Concurrently, a proposal by U.S. Treasury Secretary Bessent to extend the tariff truce with China beyond the August 12th expiration helped alleviate fears regarding potential disruptions to supply chains. Among the other leading performers were Banco do Brasil, with a 2.4% increase, Santander at 1.1%, Itaúsa at 1.2%, and Bradesco, which rose by 1.8%.