FX.co ★ Ibovespa Near 1-Month Lows

The Ibovespa index experienced a reversal from its previous gains, ultimately closing down by 1.3% at 123,932—marking its lowest point in nearly a month. This downturn was driven by deteriorating investor sentiment amid rising trade tensions between the United States and China. President Trump confirmed the implementation of additional tariffs on Chinese goods, culminating in a total of 104%, effective April 9th. This announcement intensified fears of an extended trade war, which has already inflicted significant damage on key sectors. Notably, Vale and Petrobras, the largest components of the index, experienced substantial declines, with Vale falling by 5.2% and Petrobras decreasing by 3.6%, as markets reacted to concerns over the global economic strain these tariffs might exacerbate. Initial optimism, sparked by the potential for renegotiating tariffs with other partners such as the EU and Japan, was overshadowed by the situation with China. As a result, the dollar strengthened against the real, causing widespread losses across Brazilian assets.