FX.co ★ Ibovespa Falls on Tax Revision and Global Tensions

The Ibovespa index experienced a decline of 0.6% on Thursday, as it endeavored to maintain its position above the 136,000 mark. This movement was in response to the government's recent decree partially revising the previously announced rise in the financial transactions tax, alongside a provisional measure aimed at increasing taxes on financial investments and betting activities. The new decree partially reverses the tax increase implemented in May. Additionally, the measure introduces taxes on certain previously exempt securities, adjusts investment rates, and incorporates cost containment strategies. On the global stage, market sentiment was dominated by risk aversion due to escalating trade uncertainties and rising tensions in the Middle East. In response, President Donald Trump revealed plans to dispatch letters to key trading partners over the coming one to two weeks to detail unilateral tariff rates. In the corporate spectrum, Vale reported a gain of 0.7%, while Embraer saw a decrease of 0.4%, and Eletrobras fell by 0.6%. The steel sector was negatively impacted by U.S. tariffs, with CSN experiencing a decrease of 0.8% and Gerdau declining by 0.3%.