FX.co ★ Ibovespa Edges Lower on Tuesday

The Ibovespa index slipped by 0.1% to end the day at 141,683 points on Tuesday. This decline followed a resurgence of global risk aversion due to renewed trade tensions between the US and China, involving retaliatory port fees and China's sanctions on US-associated divisions of South Korea's Hanwha Ocean, which have disrupted shipping costs. Key players in the market such as WEG, Santander, and B3 suffered losses ranging from 1.2% to 1.5%, while Marfrig, Hapvida, and Natura saw sharper declines, falling 3.7%, 2.7%, and 2.7% respectively. On a brighter note, Embraer saw an increase of 4.9%, following TrueNoord's substantial $1.8 billion order for 20 E195-E2 jets. On the domestic front, the government's inability to push forward with an IOF/tax initiative has compelled the Finance Ministry to explore alternative budget solutions, rekindling investor worries over fiscal stability and policy credibility, ultimately adding more risk to the market's underlying performance.