FX.co ★ Ibovespa Gains Despite US-Brazil Tensions

On Monday, the Ibovespa index experienced a 0.7% increase, reaching nearly 134,000 points. This rise occurred despite heightened geopolitical tensions, as investors paid close attention to statements from Finance Minister Fernando Haddad amidst the uncertainty surrounding Brazil's response to the United States' newly announced 50% tariffs. Haddad is anticipated to clarify the government’s position following a week marked by diplomatic tensions. Last Friday, U.S. Secretary of State Marco Rubio revealed visa restrictions targeting Brazilian judicial officials and their families, attributing the move to concerns over the legal actions against former President Jair Bolsonaro. In reaction, President Lula criticized the measure as “arbitrary and unfounded.” Vale saw a 0.5% gain, benefitting from iron ore prices reaching a five-month peak, fueled by China’s intention to construct the world’s largest hydroelectric plant and robust steel margins. Meanwhile, Gerdau remained unchanged, CSN experienced a 1.4% decrease, Petrobras saw a 1.5% decline, and Embraer fell by 0.9%.