2025.10.1020:28:59UTC+00Brazilian Stocks Decline on Tax, Trade Concerns

The Ibovespa index declined by 0.6%, settling at 141,500 on Friday. This decline was spurred by investor reaction to the rejection of an alternative proposal to the scrapped IOF tax increase, which aimed to alter taxation on financial investments and digital assets. This movement coincided with a broader sell-off on Wall Street. Global markets were affected by the ceasefire between Israel and Hamas, resulting in lower oil prices that negatively impacted Petrobras, which saw a 0.8% decrease. In the United States, stock markets retreated after President Trump made threats to significantly raise tariffs on Chinese imports and indicated little interest in meeting with President Xi Jinping. Shares of Ambipar plunged 2.8%, erasing earlier significant gains of more than 50% after a court ruled in favor of the company, dismissing Bradesco’s fraud allegations due to insufficient evidence. Steelmaker CSN experienced a 3.7% drop amid concerns about environmental practices and a bleak outlook from Morgan Stanley, which forecasted losses and the absence of dividend payouts until 2028. For the week, the benchmark index decreased by 2.6%.