FX.co ★ Ibovespa Halts Recovery

The Ibovespa index declined by approximately 0.5%, falling below the 127,500 mark on Thursday. This downturn interrupted yesterday's significant recovery as continued macroeconomic uncertainties and ongoing global trade tensions applied renewed pressure on Brazilian markets. Although President Trump introduced a 90-day pause on reciprocal tariffs, momentarily reducing concerns of extensive disruptions, lingering issues—such as the increased 125% tariff on Chinese imports and the ongoing effects of retaliatory actions—remain a challenge for investor sentiment. The heightened U.S.-China tensions are exacerbating fears of a global recession. Additionally, tighter global liquidity and persistent supply chain disruptions have negatively impacted earnings across leading sectors, constraining stock performance. Among the hardest hit were state-owned Petrobras, which fell by over 1% amidst sliding oil prices, and major financial institutions like Banco do Brasil, Santander, Itaúsa, and Bradesco, which recorded losses ranging from 0.5% to 1.4%.