FX.co ★ Ibovespa Volatile as Trade Talks and BCB Comments Draw Focus

The Ibovespa experienced significant fluctuations on Wednesday, fluctuating around the 139,000 mark as investors evaluated the likelihood of advancements in US trade negotiations ahead of the July 9 deadline for the tariff truce. President Donald Trump maintained that he would not extend this deadline, prompting caution in the markets. Furthermore, uncertainty regarding the timing of US interest rate cuts was heightened by lackluster ADP labor market data. Domestically, attention shifted to comments made by the central bank's monetary policy director, Nilton David, at a Citi event in São Paulo. Additionally, market participants awaited reactions to the Attorney General's Office decision to elevate the IOF decree issue to the Supreme Court. On the corporate side, shares of Vale increased by 1.1%, and Petrobras saw a 0.8% rise, whereas major banks reported declines (Santander down by 1.3% and Itaú by 0.4%). Eletrobras experienced a modest increase of 0.2%. Supermarket stocks showed gains, spearheaded by GPA, which rose by 3.8%. The retail sector displayed mixed results: Americanas went up by 1.3%, while Azzas climbed by 0.9%, and Magazine Luiza dropped by 0.6%. Embraer saw a decline of 0.5%, while Azul and Gol recorded gains of 1.1% and 0.6%, respectively.