FX.co ★ Ibovespa Rises as Investors Eye Tariff Plan and Inflation Data

The Ibovespa index experienced a rise of 1.4% on Tuesday, surpassing the 137,500 mark. This was driven by investor interest in the Brazilian government's strategy to counter US tariffs, insights from the finance minister, corporate earnings reports, and data from July's Consumer Price Index (CPI). Brazil witnessed a decrease in its annual inflation rate to 5.23% in July, down from 5.35% in June, and below the market's forecast of 5.33%. The central bank has maintained interest rates at 15% to manage cost-of-living concerns. Market participants are now anticipating the government's support initiatives for industries affected by the US's 50% tariff on Brazilian goods. On Monday, Finance Minister Fernando Haddad indicated that proposed measures would likely include credit facilities, delayed tax obligations, government procurement of goods initially intended for export, and structural reforms aimed at enhancing foreign trade. In corporate news, BTG showed a significant increase of over 5% following its report of a 41.8% growth in annual profits and record revenues, representing a 38.5% increase year-on-year. Additionally, companies in the iron and steel sectors saw gains, with Vale and CSN rising by 1.2% and 1.6%, respectively, amidst further indications of production cutbacks in China.