FX.co ★ Ibovespa Edges Lower on Tuesday

The Ibovespa index experienced a slight decline of 0.1%, closing at 139,303 on Tuesday. This dip was largely due to renewed global trade tensions sparked by President Trump's threats to reinstate 50% duties on steel, aluminum, and now, copper. These potential tariffs have already resulted in a significant impact on Brazil's metals exports, estimated at $1.5 billion, causing a comprehensive reevaluation of commodity futures. Consequently, exporters are compelled to renegotiate contracts and hasten delivery schedules. Domestically, the producer-price index for June fell by 1.29%—the most significant drop in almost two years—while industrial production decreased for the second consecutive month. This decline comes amidst the strain of a persistently high Selic rate of 15%, underscoring the fragile state of Brazil’s manufacturing recovery. Additionally, ongoing political impasses over IOF tax amendments and the absence of fresh fiscal or infrastructure initiatives from the Lula administration are exacerbating concerns about economic growth.