Ibovespa Closes Lower on New US Tariffs

The Ibovespa fell 1.2% to close at 173,825 on Thursday after the US announced a new 25% tariff on Brazilian imports. According to the announcement, the new tariff will take effect on July 22. Vale fell 2.0%, while steelmakers also posted losses, with Gerdau down 1.2% and CSN shedding 2.7%. Meanwhile, the conflict in the Middle East pushed oil prices higher on supply concerns, fueling inflation worries. Bond yields also moved higher, weighing on financials and the broader market. Itaú shed 1.4%, Bradesco lost 1.0%, and Itaúsa was down 1.0%. Utilities also traded lower, with Axia losing 1.4% and Sabesp shedding 2.3%. Other notable laggards included Petrobras (-1.7%) and WEG (-1.7%).

The Ibovespa fell nearly 1% to hover around 174,500 on Thursday after the US announced a new 25% tariff on Brazilian imports. According to the announcement, the new tariff will take effect on July 22th. Vale fell more than 1%, while steelmakers also posted losses, with Gerdau and CSN shedding more than 1% each. However, products including beef, coffee, rare earths, energy products, aircraft, and aircraft parts will be exempt from the tariff. Petrobras gained more than 0.5%, also supported by higher oil prices, while Embraer and Minerva were little changed. Meanwhile, the conflict in the Middle East pushed oil prices higher on supply concerns, fueling inflation worries. Bond yields moved higher, weighing on financials and the broader market. Itaú and Bradesco lost about 0.5%, while B3 tumbled more than 2%. Utilities also traded lower, with Axia and Sabesp down about 1%.

The Ibovespa shed 0.4% to close at 176,011 on Wednesday following the release of a new election poll and amid escalating tensions in the Middle East. A Genial/Quaest survey showed President Lula leading Flávio Bolsonaro by eight percentage points in a hypothetical second-round runoff. Meanwhile, oil prices rose as the worsening US-Iran conflict continued to fuel concerns over global supply disruptions, reviving inflation worries. Most financial stocks traded lower, with Itaú down 1.1%. Axia lost 4.2% after Goldman Sachs lowered its forecast for the company's adjusted EBITDA, citing the recent decline in energy prices, which is expected to weigh on second-quarter results. Meanwhile, Ambev shed 1.5% despite receiving a "buy" recommendation from BB Investimentos. In contrast, Vale gained 0.7% as iron ore prices edged higher.