FX.co ★ Ibovespa Eases on Wednesday

The Ibovespa index experienced a 0.4% decline, closing at 139,051 on Wednesday. This downturn reflects a blend of international and local challenges. On the global front, the unexpected loss of 33,000 jobs as reported in June's ADP report, alongside renewed uncertainty regarding US trade agreements ahead of the July 9 tariff deadline, has negatively impacted Brazil's export-driven stocks. Domestically, the economy is showing signs of deceleration, evidenced by May's 0.5% decrease in industrial production, marking the second consecutive monthly reduction. Furthermore, the central bank reiterated its stance to maintain the Selic rate at 15%, labeling it as "restrictive for a very prolonged period," which tightens the financial climate for sectors reliant on borrowing. Additional apprehensions arise from the unresolved status of the IOF tax decree combined with proposed cuts of R$20 billion in tax incentives scheduled for 2026, which has further stirred investor concerns. Among the prominent decliners were Companhia Sanea (down 3.8%), Localiza (down 6.1%), Hapvida (down 5.9%), Natura (down 7.5%), and Lojas Renner (down 3.7%). However, losses were somewhat mitigated by gains in major companies such as Petrobras (up 2.7%), Vale (up 3.8%), and Ambev (up 2.5%).