22.09.202520:19:36UTC+00Ibovespa Starts the Week in the Red

On Monday, the Ibovespa index declined by 0.5%, closing at 145,109. This downturn occurred against the backdrop of various political, fiscal, and market disturbances that dampened investment sentiment. Recently imposed U.S. sanctions targeting prominent Brazilian officials, along with the revocation of visas for key judicial authorities, heightened diplomatic tensions and suggested potential disruptions in trade relations. These developments contributed to an increased perception of sovereign and regulatory risks for Brazilian assets. Fiscal matters further compounded the situation, as the government announced larger-than-expected spending cuts and continued to negotiate temporary measures impacting taxes and revenues, thereby creating uncertainty regarding the short-term fiscal outlook. Adding to the market turmoil, Cosan's unexpected R$10 billion equity issuance led to an 18.5% drop in its stock price, prompting extensive selling in related equities and reducing overall market liquidity. Among other notable decliners were Ambev, Eletrobras, and Rede D’Or São Luiz, which each experienced losses ranging from approximately 1.3% to 1.6%.