FX.co ★ Ibovespa Tumbles Amid US-China Trade Escalation

The Ibovespa index fell by 1.1%, closing at 126,355 on Thursday. This decline follows a robust rebound experienced the previous day and comes amidst increasing trade tensions between the United States and China, which are raising concerns about global economic growth. The United States has implemented steep tariffs, now amounting to 145% on Chinese goods, which has led to fears of reduced international demand. Consequently, oil prices have dropped to their lowest in nearly four years. This trend indicates potential for weaker economic activity, posing risks to Brazil's heavily export-oriented and industrial sectors. Petrobras experienced a significant decline, falling by 6.4%, as the decrease in oil prices continued. Meanwhile, prominent financial institutions like Banco do Brasil and Santander each saw a reduction of 1.2% in their shares.