By Brazil Stock Guide – Brazil’s Ibovespa index fell on Tuesday, pressured by global market weakness and domestic political concerns, according to a report by Reuters published on Investing.com. The decline came as investors reacted to Wall Street losses, fresh GDP data confirming slower growth, and the Supreme Court’s opening session on former President Jair Bolsonaro.
At 1 p.m. local time, the Ibovespa was down 0.69% at 140,305 points, after touching an intraday low of 139,625. Financial turnover totaled 11.4 billion reais. The move tracked U.S. equities, where the S&P 500 Index dropped 1.51% after an appeals court ruled that most tariffs imposed by U.S. President Donald Trump were unlawful, though they remain in effect until October 14.
Global backdrop
Treasury Secretary Scott Bessent voiced confidence that the U.S. Supreme Court will uphold Trump’s use of a 1977 emergency powers law to impose tariffs. He added that the administration has contingency plans should the ruling go against them. The uncertainty over U.S. trade measures weighed further on Brazilian assets already facing a less favorable domestic growth outlook.
Brazil GDP slows
Brazil’s GDP expanded 0.4% in the second quarter from the previous three months, the national statistics agency IBGE said. While the number slightly beat market expectations, it reinforced the narrative of a cooling economy under tight monetary policy.
Natalia Victal, chief economist at SulAmérica Investimentos, said resilience remains but the slowdown is clear. “The deceleration message remains valid. The GDP only raises doubts about its speed,” she wrote in a note. She added that for Brazil’s central bank, the figure supports keeping the Selic benchmark rate at a restrictive level, with cuts only seen in 2026.
Bolsonaro on trial
In Brasília, the Supreme Court’s First Panel opened a session to judge Bolsonaro and seven others over their alleged attempt to overturn the 2022 election. Justice Alexandre de Moraes stressed the court’s independence: “The Supreme Court will judge impartially, without bowing to intimidation from those seeking to serve foreign interests.”
Stock movers
Vale SA (VALE3.SA) slid 0.88% as iron ore futures in Dalian ended marginally higher at 771.5 yuan a ton.
Petrobras (PETR3.SA, PETR4.SA) fell 0.03% despite Brent crude rising 1.19% to $68.96 a barrel.
C&A Modas SA (CEAB3.SA) dropped 3.53% in early sessions as part of the Ibovespa, with consumer and education names also under pressure from higher DI futures.
Embraer SA (EMBR3.SA) gained 1.52% after XP Investimentos raised its price target to 73 reais from 68, citing robust order flow and upside from Eve, its eVTOL unit.
Cosan SA (CSAN3.SA) rose 2.15% on news it is working with Shell to seek investors for a capital raise. Bank of America cut its target price to 11 reais but reiterated a buy rating.
MRV Engenharia (MRVE3.SA) advanced 1.18% after UBS BB resumed coverage with a buy recommendation, saying the worst of the company’s cash burn is over and operating performance is improving.
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