FX.co ★ Ibovespa Edges Up Amid Tax Talk and US Tariffs

On Wednesday, the Ibovespa index climbed above the 138,700 mark, continuing its upward trend from the previous session. Investors are keenly watching for potential fiscal adjustments, as Finance Minister Haddad indicated the possibility of revising the financial transactions tax hike contingent on the progress of broader economic reforms. On the international front, the United States has implemented new 50% tariffs on steel and aluminum, significantly affecting Brazil, its second-largest supplier of steel. This development has prompted a shift within Brazil’s steel and mining industries, as they navigate the dual challenges of protectionist pressures and declining global demand. Gerdau might experience less impact due to its focus on long products manufactured in the U.S., whereas CSN is expected to confront a more challenging environment. Despite these risks, steel stocks recorded gains: CSN rose by 1.43% and Gerdau by 0.8%. Other notable increases included Vale at 0.36%, Petrobras at 0.30%, and Embraer at 1.90%, with banks, airlines, and supermarkets also seeing upward movement. Meat stocks displayed a mixed performance.