5 August 2025, 18:02  Brazil: Ibovespa Rises Amid Political Turmoil.

The Ibovespa edged up 0.6% to above 133,000 on Tuesday as investors monitored the fallout from Jair Bolsonaro’s house arrest and the impact it may have on US tariffs. Supreme Justice Alexandre de Moraes cited the arrest on repeated violations of precautionary measures since the beginning of Bolsonaro's trail for enticing a coup attempt. The move challenged the US's warning that it would increase tariffs on Brazil if it maintains the trail against Bolsonaro, potentially escalating the trade war between both countries. Meanwhile, minutes from the central bank’s latest meeting reinforced the signal of a prolonged period of high interest rates, citing caution over the uncertainties created by US trade policy. On the corporate front, shares of Petrobras (-0.3%) and retailers were mixed (Magazine Luiza -0.1%, Americanas +0.2%). Major banks advanced (Santander +0.2%, Banco do Brasil +0.7%), and Vale gained 0.3%. Embraer led gains, rising over 1% after posting strong earnings.

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