FX.co ★ Ibovespa Falls as Trade Tensions Weigh

The Ibovespa index dropped significantly to 137,700 on Friday, marking its third consecutive day of losses as investors evaluated recent economic data along with discouraging trade policy developments. Brazil's GDP recorded a 1.4% growth in the first quarter compared to the previous quarter, aligning closely with market predictions. This growth represents a sharp acceleration from the third quarter, affording the central bank the flexibility to uphold its stringent interest rate, among the highest real rates globally, for an extended period. Meanwhile, the trade outlook deteriorated following the US courts' decision to reinstate previous tariffs and President Trump's announcements indicating further trade barriers against China. Stocks of companies like Vale and major banks experienced declines, while Petrobras witnessed fluctuations. Additionally, market participants kept a close eye on the political unrest surrounding the government's directive to increase the Tax on Financial Transactions.