FX.co ★ Ibovespa Drops on Tariff Fears and Fiscal Uncertainty

On Wednesday, the Ibovespa index declined by 0.6%, falling below the 139,000 mark as both global and domestic uncertainties dampened risk appetite. Investors are responding to U.S. President Donald Trump's renewed threats of tariffs, potentially imposing a 50% duty on imported copper, along with planned taxes on semiconductors, pharmaceuticals, and products from BRICS nations. These developments are affecting global sentiment and impacting commodity-linked stocks such as Vale and Petrobras. Market participants are also paying close attention to the minutes from the Federal Reserve, which may provide insights into future U.S. interest rate decisions. Domestically, focus is on the congressional hearing of central bank President Galípolo, where stakeholders are eager for clarity on monetary policy directions. Meanwhile, political tensions persist after the Supreme Court suspended the government's IOF tax increase and Congress's subsequent vote to overturn it, uncertainty looms over fiscal strategies. On the corporate side, shares of Magazine Luiza decreased by 0.4%, Embraer fell by 1%, and Petrobras saw a 1% decline, whereas Marfrig's stock increased by over 2%, Azul gained more than 1%, and Azevedo ON surged by nearly 4%.