FX.co ★ Ibovespa Edges Lower on Wednesday

The Ibovespa index saw a slight decline, closing at 135,067 on Wednesday. This marked an end to its seven-day upward trajectory, retracting from the peak achieved since September. The decline was primarily influenced by underwhelming corporate earnings and a downturn in commodity producers. Among the key market movers, WEG's shares fell significantly, dropping 10.8% due to compressed margins and earnings that barely fell short of analyst expectations. Additionally, shares of Petrobras and Vale decreased by 1.5% and 1.8% respectively, as concerns over declining global commodity prices and stagnant capital expenditures weighed on investor sentiment.

On the domestic economic front, Brazil's unemployment rate rose to 7.0% in the first quarter, marking its highest point since May 2024. This increase highlights a fragile labor market beset by high borrowing costs and persistent trade uncertainties.

Internationally, the United States first-quarter GDP saw an unexpected contraction, declining at an annualized rate of 0.3%. Concurrently, private-sector hiring dropped to its lowest level since September 2024. These indicators have heightened anxiety that President Trump’s aggressive tariff measures may already be negatively impacting American economic growth.