FX.co ★ Ibovespa Hit by Tariff Concerns and US-IranTensions

The Ibovespa fell 2.2% on Wednesday, closing at 170,330 points, as investors weighed rising trade frictions with the United States, diminishing prospects for a US-Iran agreement, and weak domestic economic indicators. President Luiz Inácio Lula da Silva called a cabinet meeting after Washington proposed new tariffs on imports from 60 economies, including Brazil. At the same time, oil prices advanced amid renewed hostilities in the Persian Gulf, heightening geopolitical uncertainty. On the domestic front, Brazil’s services sector was close to stagnation in May, with companies reporting mounting competitive pressure, tighter financial conditions, and subdued demand. Financial stocks led the declines, with Bradesco and Itaú each slipping 2%, while B3 plunged 4.7%. Vale dropped 3.8% in response to lower iron ore prices. Healthcare and utilities also underperformed, with Rede D’Or down 3.3% and Auren losing 3.1%.