On Monday, the Ibovespa index experienced a slight decline of 0.1%, closing at 134,036 points. Investors weighed cautious optimism regarding ongoing trade negotiations between the United States and the European Union against the backdrop of increasing political and regulatory challenges. As the August 1st deadline approached, US Treasury Secretary Scott Bessent emphasized the importance of the substance of any potential deal over its timing, indicating that any extension would be at President Trump's discretion. Meanwhile, President Lula criticized the use of trade as a tool for "coercion and blackmail," referring to recent US tariff threats. These tensions have been exacerbated by the anticipated implementation of 50% tariffs on Brazilian exports starting August 1st, alongside the ongoing Supreme Court disputes over former President Bolsonaro’s legal immunity.
In the corporate sector, Vale's shares saw a 2% rise due to increased iron ore prices, supported by hydroelectric stimulus measures from Beijing. Petrobras also gained 0.5% amid stable crude oil benchmarks. However, these gains were counteracted by declines in other sectors, with WEG dropping 1.1% and consumer companies like Lojas Renner, Natura, and Hypermarcas experiencing declines of 1.5%, 1.8%, and 1.9%, respectively.
