FX.co ★ Ibovespa Rebounds from 1-Month Low

The Ibovespa increased by 0.2% to close at 135,441 on Wednesday, rebounding from a one-month low. This rise was supported by Brasília’s successful defense of the IOF increase in the Supreme Federal Court, which bolstered short-term fiscal revenues. Additionally, Vice-President Alckmin secured a commitment from the United States to continue bilateral discussions before the August 1st deadline concerning President Trump’s proposed 50% tariff on Brazilian exports, which eased immediate concerns in the export sector. Meanwhile, the unexpectedly flat U.S. producer-price index for June reinforced optimism around potential rate cuts by the Federal Reserve. Ambev led the advances with a 2.4% rise due to strong off-premise sales, WEG gained 3.2% following strong overseas order intake, and Vale managed to close 0.2% higher as iron ore prices stabilized. However, Petrobras saw a 1.2% decline due to seasonal refinery maintenance. Nonetheless, widespread strength in the materials and consumer sectors underscored prevailing confidence in a more accommodating monetary policy in the United States and manageable risks in domestic policy.