• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Investing

Brazil’s Ibovespa dips amid global market turmoil and Trump’s threats to the Fed

by April 22, 2025
by April 22, 2025

Brazil’s benchmark stock index, the Ibovespa, fell 0.4% to below 129,300 points on Tuesday, after global markets turned pessimistic in response to recent signals about instability.

According to Trading Economics, the retreat came a day after a tough day for Wall Street and major fresh anxieties over the future of US monetary policy, in response to new threats from President Donald Trump in an old conflict with Federal Reserve Chair Jerome Powell.

Brazilian investors had a tough day after returning from a national holiday, dissecting foreign political and economic strife.

The latest remarks by Trump, who last week demanded the Federal Reserve cut interest rates immediately and suggested he could fire Powell, triggered a new bout of volatility in US markets.

US Treasuries, equities, and the dollar sold off sharply following the remarks, setting a cautious tone across global markets that extended into emerging markets.

Trump’s pressure on the Fed ripples abroad

President Trump’s persistent pressure on the Fed to decrease interest rates, along with a veiled threat to fire Powell, increased investor concerns about the US central bank’s independence and future policy direction.

The uncertainty triggered a global risk-off sentiment, with traders selling risk assets in favour of safe-haven investments.

In Brazil, the ripple effect was immediate. Investors reduced their positions across sectors, expecting that any persistent slump in the United States or disruption in global financial markets would have a knock-on effect for emerging economies.

Trade tensions threaten Brazil’s export outlook

Growing fears about Trump’s trade policies exacerbated the discomfort.

The US president has resumed threats to slap tariffs on steel, automobiles, and a variety of other goods, stoking concerns about a bigger global trade war.

Negotiations over potential exemptions for key trading partners, like Brazil, have been slow, leaving local exporters in doubt.

Brazil’s economy is strongly reliant on commodity exports, thus, the stakes are very high.

A slowdown in the global economy, particularly in China and the United States, could have a significant impact on demand for oil, iron ore, and agricultural commodities.

Commodity gains fail to offset overall market losses

Despite the overall sell-off, some positive developments arose. Oil prices rose modestly, aided by Middle Eastern supply fears, while Chinese iron ore futures increased despite India’s new steel export tariff.

Nonetheless, these advances provided only little support for Brazilian equities.

Leading companies in the oil, industrial, and financial sectors took the brunt of the selloff. Petrobras, the state-controlled oil behemoth, fell 1.5%, weighed down by investor concerns about oil consumption and broader risk aversion.

Ambev, the beverage giant, fell 1.1%, while Banco Santander Brasil fell 1.6%, reflecting the slump in global banking markets.

With uncertainty surrounding US monetary policy and trade relations, economists predict continued volatility in Brazilian markets.

Market investors are closely monitoring incoming economic reports and any new moves in US trade policy.

Investors will likely remain cautious for the time being, with a focus on both Brasília and Washington.

The post Brazil’s Ibovespa dips amid global market turmoil and Trump’s threats to the Fed appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Madison Didn’t Predict the Market as the Last Check on Power
next post
CRO price jumps 14% as Crypto.com seals crypto ETF deal with Trump Media

Related Posts

GMS stock jumps 29% on takeover interest from...

June 20, 2025

Japan’s rice price surge: what’s driving it and...

June 20, 2025

Foxconn and Nvidia to deploy humanoid robots in...

June 20, 2025

US stocks climb higher at open: Dow jones...

June 20, 2025

Apollo backs £4.5bn loan for delayed Hinkley Point...

June 20, 2025

Audi weighs $4.6 billion US plant amid tariff...

June 20, 2025

Tesla stock gains ahead of robotaxi launch: analyst...

June 20, 2025

BofA raises STOXX 600 target amid resilient global...

June 20, 2025

XRP price stuck under $3: can it finally...

June 20, 2025

Elon Musk confirms Tesla Robotaxi pilot launching in...

June 20, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Despite Tariffs, Inflation Remained Low in May

    June 28, 2025
  • Despite Tariffs, Inflation Remained Low in May

    June 27, 2025
  • PBS and NPR: A Free Press Doesn’t Need a Government Budget Line 

    June 27, 2025
  • Trump v Powell: The Credibility Cost of Politicized Monetary Policy

    June 27, 2025
  • Consumer IoT Products are Priced 44% Higher on Average Than Similar Non-Connected Products

    June 27, 2025
  • Morse Micro Wi-Fi HaLow Technology Receives Matter Certification

    June 27, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,643)
  • Editor's Pick (171)
  • Investing (185)
  • Stock (1,062)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Reddit is attracting ad dollars: will RDDT...

May 3, 2025

Air India plane crash: London-bound flight with...

June 12, 2025

Brazil’s Inter&Co posts 57% jump in Q1...

May 12, 2025