Brazil Stocks Drop on Tariff Concerns

The Ibovespa fell more than 0.5% to trade below the 173,000 mark on Monday as investors awaited a public hearing in Washington on the US trade investigation into Brazil for the possibility of additional tariffs on Brazilian products. The hearing will consider imposing a 25% tariff on Brazilian goods following an investigation into the country's trade practices. The USTR said it had identified what it described as "unreasonable" practices. Shares of major exporters declined, with Vale down 0.7%, Petrobras losing 1%, and Minerva slipping 0.6%. Petrobras was also pressured by lower oil prices after OPEC+ agreed to raise its production target starting in August and shipping through the Strait of Hormuz continued to normalize. Other notable decliners included Bradesco (-2.6%), Ambev (-2.6%), WEG (-1.0%), and Rede D'Or (-1.6%).

The Ibovespa gained 0.7% to close at 174,070 on Friday as investors assessed May industrial production and June services PMI data. The S&P Global Services PMI showed the sector expanded at a slightly faster pace in June as demand improved, supporting domestically oriented stocks. Retail shares led gains, with Ultrapar rising 3.5% and Magazine Luiza advancing 4.2%. Financial stocks also moved higher, with Itaúsa adding 0.7% and B3 gaining 1%. Meanwhile, oil prices remained near pre-conflict levels amid optimism over US-Iran peace efforts, easing concerns about energy-driven inflation. Petrobras rose 0.8% despite lower crude prices after inaugurating the Pre-Salt Technology Center, a semi-industrial-scale research facility built with R$300 million in funding. Meanwhile, industrial production rose just 0.2% year-on-year in May, well below forecasts of a 1.3% increase. Investors also monitored the US decision to launch a public consultation on Brazil's trade policies and practices.

The Ibovespa edged up to trade near the 173,000 mark on Friday as investors assessed May industrial production and June services PMI data. Services activity data showed an expansion at a slightly faster pace in June as demand improved, supporting shares linked to domestic tertiary sector activity. Rede D'Or gained nearly 1%, Raia Drogasil advanced 1.5%, while Bradesco and Banco do Brasil added about 0.5%. Also, oil prices remained near pre-conflict lows amid optimism over US-Iran peace efforts, easing concerns about energy-driven inflation and supporting financial stocks and the broader index. Meanwhile, industrial production rose just 0.2% year-on-year in May, well below forecasts of a 1.3% increase, Ambev fell nearly 1%. Investors also monitored the US decision to launch a public consultation on Brazilian trade policies and practices while awaiting trade balance data.