FX.co ★ Ibovespa Rises on Hopes of US-Brazil Trade Talks

The Ibovespa index climbed nearly 1% on Monday, edging closer to the 134,000 mark, buoyed by optimism surrounding potential progress in trade negotiations with the United States. Finance Minister Fernando Haddad expressed intentions to engage in dialogue with US Treasury Secretary Scott Bessent. Concurrently, President Trump remarked that Brazilian President Lula could reach out to him at any time to address the ongoing tensions regarding the 50% tariff imposed on Brazilian goods. Lula affirmed Brazil's willingness to engage in open discussions. On the international front, market sentiment was influenced by the prospect of a Federal Reserve interest rate cut in September. This expectation followed a disappointing US jobs report and Trump's abrupt termination of Bureau of Labor Statistics Commissioner Erika McEntarfer, which heightened concerns over the credibility of economic data and the politicization of monetary policy. Additionally, news of Trump's potential nomination of a new Federal Reserve board member contributed to the apprehension. In corporate developments, shares of CSN rose by 2.2%, Embraer by 0.7%, and Vale by 0.5%, while Taurus saw a notable surge of over 10%, attributed to its preemptive accumulation of US inventory ahead of the August 1 tariff. Meanwhile, Oi's stock increased by 2% and Azul's by 1.5%, whereas Petrobras experienced a decline of 0.5% and Gerdau fell by 1.6%.