FX.co ★ Ibovespa Falls as War Fears Shake Markets

On Friday, the Ibovespa index experienced a decline of approximately 0.4% in early trading, as it sought to remain above the 137,000 mark amid escalating risk aversion. Global markets were rattled by news of Israel's strike on Iran's nuclear and missile facilities, heightening concerns about a potential widespread conflict and prompting a shift towards safe-haven assets. Internationally, investors are on edge, seeking more clarity regarding the US-China tariff ceasefire, which has contributed to increased market caution. Within Brazil, attention remains fixated on the financial transactions tax, with House Speaker Hugo Motta indicating plans to propose a decree to halt the government's proposed rate hike. In the corporate sector, the escalations in the Middle East have led to a 10% surge in oil prices, consequently lifting Petrobras shares by 3%. In contrast, stocks sensitive to risk such as Vale (-1.3%), Magazine Luiza (-4.4%), and Bradesco (-1.6%) saw declines. Additionally, Embraer shares fell by 0.8% following a tragic Boeing plane crash in India that resulted in 290 fatalities.