FX.co ★ Ibovespa Sinks on US Tariff Threat and US-Iran Tensions

The Ibovespa retreated more than 1.5% on Wednesday, slipping below 171,500 points, as investors digested rising trade frictions with the United States, dimming prospects for a US–Iran peace agreement, and weaker-than-expected domestic data. President Lula convened a cabinet meeting after Washington proposed additional tariffs on imports from 60 economies, Brazil among them. At the same time, oil prices advanced as renewed hostilities in the Persian Gulf dampened expectations for any near-term easing of geopolitical tensions. On the macro front, Brazil’s services sector was close to stagnation in May, with firms citing intense competition, tight financing conditions, and subdued demand. In equities, banks declined, with Bradesco falling nearly 1.5%. Healthcare and utilities also lagged, as Rede D’Or dropped more than 2% and Axia slid over 2%. Vale lost more than 1.5%, pressured by weaker iron ore prices.