FX.co ★ Ibovespa Climbs Despite US-Brazil Tensions

On Monday, the Ibovespa Index experienced an increase of over 0.6%, nearing the 135,000 mark. This upward movement came as investors closely watched trade discussions ahead of the imminent August 1 deadline, while also considering the ongoing political tensions linked to tariffs and the situation involving former President Bolsonaro. U.S. Treasury Secretary Bessent emphasized that the current administration prioritizes securing comprehensive and beneficial agreements over strictly adhering to deadlines, suggesting any potential extension would be decided by President Trump. Meanwhile, President Lula expressed disapproval of using international trade as what he described as an “instrument of coercion and blackmail,” subtly alluding to actions taken by Washington. Notably, President Trump referenced legal actions involving Bolsonaro as justification for implementing new tariffs on Brazilian exports. In the corporate realm, Vale saw a rise of 2% driven by increasing iron ore prices, while Petrobras experienced a modest gain of 0.1%. Retailers demonstrated notable progress, with Americanas advancing by 1.8% and Casas Bahia rising by 2.7%. The performance of major banks was mixed; Bradesco recorded a 0.4% increase, whereas Banco do Brasil saw a decline of 0.6%.