01.08.202520:26:02UTC+00Ibovespa Drops 0.7% on the Week

The Ibovespa experienced a decline of 0.5% on Friday, settling at 132,437, which contributed to a 0.7% decrease for the week. This downturn was influenced by ongoing industrial contraction, a significant drop in oil prices, and the introduction of new trade tariffs that dampened investor interest. The July Purchasing Managers' Index (PMI) remained stagnant at 48.2 for the third consecutive month, while June's industrial production marginally increased by 0.1% following no growth in May, highlighting the sluggish economic expansion. Oil prices dropped due to projections of increased OPEC+ supply coupled with diminished demand, leading to a 2.2% decline in Petrobras shares. Additionally, President Trump's implementation of a 50% tariff on Brazilian exports rekindled fears regarding export revenue, resulting in profit-taking within the agricultural and mining sectors. Even Embraer's exemption from a 10% tariff did not bolster its stocks, as concerns over margin pressures became apparent. Meanwhile, subdued U.S. payrolls at 73,000 jobs, coupled with significant revisions, cast a shadow on the global economic outlook and spurred early bets on Federal Reserve interest rate cuts, which have subsequently tightened the availability of funds for equities in emerging markets.