On Monday, the Ibovespa index experienced a significant decline, dropping approximately 0.6% to settle below 131,500, its lowest point in two weeks. This downturn was largely attributed to mounting global trade tensions, exacerbated by President Trump's recent announcement that impending tariffs would be applied universally. This statement dashed earlier hopes for a more moderate approach to tariff implementation, sparking a worldwide reassessment of market risk and igniting fears of a burgeoning trade war with the potential to trigger a global recession.
In Brazil, these international challenges are intertwined with domestic economic concerns. The Central Bank, through its Focus Bulletin, has revised both exchange rate and GDP forecasts downward, further undermining investor confidence. This combination of factors has prompted a reevaluation of stock values in the Brazilian market. Among the hardest hit were the shares of Vale, a major player in iron ore exports, which fell by over 2%. Prominent banking institutions, including Banco do Brasil, Santander, Itaúsa, and Bradesco, also experienced declines, with losses ranging between 0.7% and 1.7%.
