FX.co ★ Brazilian Stocks Extend Drop from Record

On Tuesday, Brazil's Ibovespa index experienced a slight decline, settling at the 164,300 mark. This continued its retreat from the previous week's record high, influenced by global equity market trends in response to the United States' potential new tariffs against key trading partners. The banking sector took a notable hit, with shares of Itau, Bradesco, and Banco do Brasil decreasing by between 0.5% and 1%, affected by a downturn in government bonds across major economies, echoing similar trends in Japan amid expectations of tax reductions in the country's heavily indebted economy. Additionally, steel manufacturers saw significant declines, mirroring the decrease in Chinese market benchmarks. Specifically, Gerdau's shares dropped by 1%, while CSN experienced a fall of 1.5%.