FX.co ★ Ibovespa Recovers on Tuesday

On Tuesday, the Ibovespa index experienced a 0.6% rise, concluding the day at 137,546. This increase was largely driven by alleviated fiscal apprehensions after President Lula showed willingness to negotiate alternatives to the unpopular IOF tax increase. Additionally, Finance Minister Haddad indicated a degree of flexibility regarding the decree, which bolstered optimism for reaching a consensus on a credible fiscal strategy. Investors, previously concerned about abrupt tax hikes that could hinder growth, were reassured by this shift toward more structured policy measures. The market's favorable view was evidenced by strong performances in domestic-focused stocks such as Magazine Luiza, which rose by 6.2%, and B3, which increased by 2.3%. These gains reflect the growing optimism that a more collaborative fiscal approach might safeguard consumption and credit. Conversely, the rise in the index was restrained by declines in heavyweight stocks, with Petrobras and JBS experiencing losses of 2.8% and 3%, respectively.