FX.co ★ Ibovespa Extends Gains for 2nd Session

The Ibovespa index recorded a modest increase of 0.1%, closing at 133,151 on Tuesday, building on the previous day's upward trend. This movement came in the wake of Bolsonaro's house arrest, which heightened tensions surrounding the imminent U.S. tariff threat. Meanwhile, minutes from the Copom meeting affirmed that the Selic interest rate would remain at 15% "for a very extended period." Bolsonaro's detention for continuous violations of court orders risked prompting Washington to impose a 50% tariff on Brazilian exports. However, ongoing negotiations to secure exemptions for key products provided some relief. On the corporate side, leading financial firms Bradesco and Itaúsa reported gains of 1% and 1.3%, respectively. In the healthcare sector, Hapvida and Raia Drogasil outshone others with increases of 4% and 1.8%. In addition, the recent weaker-than-expected U.S. payroll data, which showed an addition of 73,000 jobs, increased the likelihood of a Fed interest rate cut in September, potentially enhancing global liquidity for resource and financial stocks.