FX.co ★ Ibovespa Extends Losses Ahead of Fiscal Report

The Ibovespa index fell by 0.3%, closing at 137,480 on Thursday, following a 1.6% drop the previous day. This decline occurred as investors awaited the release of the year's first Bimonthly Report on the Assessment of Primary Revenues and Expenditures. Attention was also focused on an upcoming press conference featuring Finance Minister Fernando Haddad and Planning Minister Simone Tebet, who are expected to discuss the fiscal data in detail. On an international scale, both equity and bond markets faced continued pressure after the US House of Representatives approved President Donald Trump's tax-and-spending plan. This plan, which includes tax reductions coupled with heightened government spending, has heightened worries about an increasing US debt burden. The situation has reinforced expectations that the Federal Reserve might maintain elevated interest rates for a prolonged period. Contributing further to the cautious atmosphere, Moody’s recently downgraded the US credit rating from its highest "Aaa" classification to "Aa1".