FX.co ★ Ibovespa Slips as Markets Weigh US-China Deal

The Ibovespa index saw a slight decline of approximately 0.2% on Wednesday, hovering around the 136,000 mark. This dip occurred amidst a generally cautious market sentiment, which persisted despite the release of softer US inflation statistics and fresh optimism for advancements in US-China trade negotiations. President Trump has announced that an agreement with China has been established following two days of talks, laying the groundwork for what is being termed the Geneva consensus. However, the absence of detailed information and the need for formal approval from both Trump and Xi have contributed to market wariness. In Brazil, investors are focusing on forthcoming announcements regarding the government's strategies to counterbalance the adjustments to the decree that increased the financial transactions tax. The Finance Minister, Haddad, is expected to address a joint congressional session, potentially shedding light on fiscal planning. In corporate news, Petrobras experienced a 0.8% rise, while Vale fell by 0.5%, and Embraer decreased slightly by 0.1%. The banking sector opened on a low note, with Banco do Brasil down by 0.3%, although Santander made significant gains of nearly 4%. Meanwhile, the steel industry faced losses, as CSN dropped by 1.4% and Gerdau by 2.6%.