Ibovespa Posts Weekly Gains

The Ibovespa index experienced a 1.1% increase, closing at 127,682 on Friday, which resulted in a 0.3% rise for the week. This uptick was largely driven by gains in commodity producers, as global commodity prices showed signs of stabilization. State-owned Petrobras saw a recovery, rising by 2.2% after prior significant losses, while iron ore heavyweight Vale gained 2%, contributing positively to the index’s overall performance. Despite these advances, global markets continued to feel the pressure from growing trade tensions. In a direct response to Washington’s tariffs of up to 145% on Chinese products, China’s finance ministry increased tariffs on U.S. imports from 84% to 125%. Additionally, the United States persists with a 10% basic tariff on most imports and a 25% levy specifically on steel, aluminum, and automobiles, heightening fears of a potential recession and affecting risk assets. Domestically, Brazil’s primary economic activity index showed a 0.4% increase in February, surpassing expectations and underscoring the country’s economic resilience. However, annual inflation surged to 5.48% in March, reaching its highest level since February 2023.

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