Ibovespa Slips as Rising Unemployment and Trade War Fears Weigh
On Friday, the Ibovespa index experienced a decrease of approximately 0.2%, dropping below the 133,000 mark. This decline reduced its weekly gain to roughly 0.4% as Brazilian equities faced pressure due to increasing unemployment rates and growing trade tensions. The unemployment rate rose to 6.8% in the three months ending in February, up from 6.5% in January, indicating early signs of a softening labor market. Although the rate remains historically low, the increase suggests a slowdown in private-sector hiring, with employment growth increasingly dependent on positions in public administration. Concurrently, concerns about a trade war escalated following the announcement by US President Trump of a 25% tariff on auto imports, along with broader tariff plans. These developments raised fears of export disruptions and increased costs for Brazilian companies involved in international trade. Leading the declines were major players such as Ambev, WEG, JBS, and Eletrobras, each recording losses of over 1%.
The material has been provided by - RobotFX
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