FX.co ★ Brazil Stocks Dip Before US Tariff Deadline

The Ibovespa index fell by 0.4% on Monday, slipping below the 141,000 mark, as investors approached the market with caution ahead of the looming U.S. deadline for the imposition of reciprocal tariffs. This atmosphere of uncertainty has been exacerbated by the potential for President Trump to reverse course at the last minute, a pattern observed in previous instances, thus fostering a "wait-and-see" approach among investors. President Trump has recently adopted a more stringent stance, suggesting an additional 10% tariff on countries aligned with BRICS, increasing pressure on emerging market assets like Brazil's. On the domestic front, the ongoing disagreement between the executive and legislative branches over the IOF tax continues to command attention and negatively impact market sentiment. Vale's and Petrobras's shares both saw a slight decline of 0.3%, while major banks remained mostly stable. Retail sector performance was mixed, with Americanas gaining 0.7% and Magazine Luiza slipping by 0.2%. Notably, Embraer experienced a modest increase of 0.1%, whereas Eletrobras' shares remained unchanged.