FX.co ★ Ibovespa Slips on Tax and Trade Uncertainty

On Thursday, the Ibovespa index observed a slight decline, lingering below the 135,500 mark, as investors navigated increasing fiscal and trade uncertainties. The investment climate was unsettled following Supreme Court Justice Alexandre de Moraes' decision to reinstate the Financial Operations Tax hike retroactively, sparking concerns over unforeseen tax burdens. On the domestic front, Vice President Geraldo Alckmin advocated for immediate discussions with the United States regarding the 50% tariff on Brazilian products, hinting at the possibility of extending the negotiation timeframe. Additionally, global market caution remains high in the wake of former President Trump's announcement of new tariffs and rumors about his potential replacement of Fed Chair Jerome Powell, amplifying external risk factors. These circumstances adversely affected major stocks: Petrobras fell by 0.7% and CSN by 0.2%, while Embraer saw a modest increase of 0.1%, and Vale and Gerdau each posted gains of 0.5%.