FX.co ★ Ibovespa Drops for Third Session

The Ibovespa index experienced a 1% drop, closing at 137,120 on Friday, marking its third day of consecutive losses. This decline came as investors processed new economic data amidst ongoing trade policy uncertainties. Brazil's GDP increased by 1.4% in the first quarter, in line with expectations and showing a significant upturn from the previous quarter. This growth supports the central bank's decision to maintain its current high restrictive interest rate, known for being one of the highest globally in real terms. Adding to market concerns was the trade outlook, which became more uncertain after U.S. courts reintroduced tariffs that were previously lifted, and President Trump indicated the possibility of new restrictions targeting China. Major contributors to the Ibovespa's decline included Vale, which fell by 2%, and Petrobras, which decreased by 0.6%, with several leading banks also ending the day in negative territory. Additionally, political unrest due to the government's proposal to increase the Tax on Financial Transactions fueled further market anxiety. Over the week, the Ibovespa recorded a 0.5% decline.