FX.co ★ Ibovespa Drops on Thursday

On Thursday, Brazil's Ibovespa index declined by 0.7%, closing at 133,071, as both international and national challenges exerted pressure on the stock market. Concerns emerged following President Trump's unexpected decision to impose a 50% tariff on the majority of Brazilian exports, though crucial industries received exemptions. This move raised apprehensions about profit margins and the stability of supply chains. On a global scale, diminishing expectations for a September interest rate cut by the Federal Reserve, coupled with persistent US core PCE inflation, negatively affected investor sentiment. Domestically, a primary deficit of R$47.1 billion in June exacerbated fiscal worries. Furthermore, the Central Bank indicated that the Selic rate would remain at 15% "for a very prolonged period," disappointing expectations for monetary easing and impacting stocks sensitive to interest rates. Ambev experienced a sharp decline of 5.7% following underwhelming earnings, leading losses along with banks, retailers, and commodity exporters.