FX.co ★ Ibovespa Declines as Global Risk Aversion Persists

On Friday, the Ibovespa experienced a decline of 0.3%, dipping below the 155,000 mark as investors kept a close eye on the U.S. decision to lift the 40% import tariff on certain Brazilian goods. This development occurred against a backdrop of persistent global risk aversion. President Trump issued an order to suspend tariffs on agricultural products that were previously targeted in July, a decision anticipated to impact Brazilian markets significantly. Concurrently, global investor sentiment received a boost from comments by New York Federal Reserve President John Williams, who maintained a cautiously dovish tone. Williams reiterated that he perceives U.S. monetary policy as "modestly restrictive" and hinted at the possibility of a "further adjustment in the near term" to align the federal funds rate more closely with a neutral stance. In the stock market, significant banks such as Itaú and Bradesco saw their shares decline by 0.5% and 0.7%, respectively. Key players like Petrobras and Vale also faced a decrease of approximately 0.5%, impacted by weaker oil and iron ore prices. In the utilities sector, performance was mixed, with Axia declining by 0.2% while Cemig managed to gain 0.5%. On a positive note, Ambev's shares rose by 0.3%.