FX.co ★ Ibovespa Dips Amid Middle East Tensions

The Ibovespa index experienced a slight decline of 0.2%, closing at approximately 137,500 on Friday, primarily due to heightened tensions between Israel and Iran, which negatively impacted investor confidence. This tension spurred a global market pullback after Iran responded to Israel's strikes on its nuclear and missile sites, raising concerns about the potential for a broader conflict and boosting demand for safer investment assets. Investors remained vigilant as they awaited news on a possible US-China tariff agreement. On the domestic front, attention turned to the issue of the financial transactions tax, with House Speaker Hugo Motta indicating plans to advocate for a decree to halt the government's proposed increase in the tax rate. In the corporate sector, the sharp rise in oil prices—up 7% due to unrest in the Middle East—led to a 2.5% increase in Petrobras shares. Conversely, risk-sensitive stocks saw declines, with Vale decreasing by 1.1%, Magazine Luiza dropping 6.6%, and Bradesco falling 0.7%. Embraer also faced a significant drop of 3.1% following a tragic Boeing plane crash in India that resulted in the loss of 290 lives.