FX.co ★ Ibovespa Reverse Losses After Tax Hike Plans

On Friday, the Ibovespa saw a modest increase of 0.2%, closing at 137,620, as it managed to recover from earlier downturns amidst fiscal and political challenges in Brasília. The government decided to reverse its earlier modifications to the Tax on Financial Operations, reinstating a 0% rate on offshore investments and 1.1% on international remittances. This change coincided with the Finance Ministry’s announcement of a surprisingly large BRL 31.3 billion budget freeze, a measure deemed adequate to achieve this year’s primary deficit goal. Political uncertainty continued to linger after U.S. Senator Marco Rubio hinted at potential sanctions against Supreme Federal Court Minister Alexandre de Moraes. In trade developments, data revealed a record $27.2 billion in trade flows between Brazil and the U.S. this year, despite increasing global trade tensions following Trump's proposed tariffs on the EU and Apple products. Among individual stocks, Braskem experienced a significant surge of 10% following news of a takeover bid by Nelson Tanure.