FX.co ★ Ibovespa Breaks 7 Day Win Streak

The Ibovespa index experienced a decline of approximately 0.5%, dropping below the 134,500 mark on Wednesday. This move ended a seven-day streak of gains and signaled a retreat from its peak since September. The decline was influenced by a combination of sober data both globally and domestically, which negatively impacted Brazil’s benchmark index. Unemployment in Brazil rose to 7.0% in the first quarter, marking the highest level since May 2024, and indicating a more fragile labor market in an environment of high borrowing costs and trade uncertainties. Additionally, corporate results contributed to a downbeat atmosphere. Specifically, WEG's stock dropped over 10% due to margin pressures and earnings that narrowly missed expectations. Meanwhile, Petrobras saw a 1% decrease and Vale a 2% drop, both affected by concerns over decreasing global commodity prices and delays in capital investment. Internationally, U.S. futures were adversely affected following an unexpected 0.3% annualized contraction in first-quarter GDP, coupled with a sharp fall in private-sector job creation to just 62,000 in April—its lowest point since September 2024. This fueled fears that President Trump's extensive tariff policies are already impacting U.S. economic growth and energy consumption.