FX.co ★ Ibovespa Trims Still-Strong Weekly Gains

The Ibovespa index declined by 0.5%, concluding Friday’s trading session at 135,913. Despite this dip, the index achieved a robust weekly gain of 2.7%, as market participants concentrated on corporate earnings reports and the Brazilian government’s strategy in response to impending US tariffs. On Wednesday, Petrobras revealed its second-quarter net profit of R$26.65 billion, driven by increased oil production. This positive performance was somewhat overshadowed by falling global prices for oil and fuel, leading to a 10% drop in Petrobras shares as investors reevaluated the industry's prospects and the company's exposure to US trade policies. Concurrently, Vice President Geraldo Alckmin held discussions with Chargé d'affaires Gabriel Escobar, emphasizing the importance of dialogue concerning data centers, big tech, and strategic minerals in ongoing trade negotiations with the United States. He also indicated that the government plans to reveal its contingency strategy by the following Tuesday. Meanwhile, the uncertainty surrounding a new 50% US tariff on Brazilian exports exerted additional pressure on the agribusiness and industrial export sectors, despite certain exemptions for essential goods. The Finance Minister, Haddad, has announced a R$30 billion credit package, but this has done little to alleviate concerns about potential trade disruptions.