FX.co ★ Ibovespa Rises Amid IOF Lawsuit Talk and Embraer Rally

The Ibovespa edged higher, surpassing the 139,000 mark on Tuesday, as investors speculated about the government's potential Supreme Court lawsuit in response to Congress's repeal of the IOF tax increase. Finance Minister Fernando Haddad indicated that the lawsuit might move forward, contingent upon approval from the Attorney General’s Office. Simultaneously, Brazil's June PMI data revealed industrial activity hitting a two-year low. President Lula was present at the unveiling of the 2025/2026 Harvest Plan, which allocates R$516.2 billion for commercial agriculture—a 1.5% rise compared to the previous cycle. On the corporate front, Embraer's shares soared by 4.4% following the delivery of jets to Paraguay's Air Force and an agreement with SAS to potentially sell up to 55 aircraft. Shares of Eletrobras (+0.4%), Petrobras (+0.2%), Banco do Brasil (+0.2%), and Bradesco (+1.1%) experienced gains, whereas Vale's stock dipped nearly 1% amid market fluctuations.