12.09.202520:30:25UTC+00Ibovespa Gives Up Record High

On Friday, the Ibovespa index retreated by 0.6% to conclude the trading session at 142,272, stepping back from its record high. This decline occurred as investors assessed the economic implications of the recent Supreme Court decision convicting former President Jair Bolsonaro. The ruling has heightened concerns about potential retaliatory measures from the United States, which could include tariffs or targeted sanctions. Such actions might elevate the effective cost of Brazilian exports and necessitate a reassessment of the country's risk profile. Bolsonaro received a historic sentence of 27 years and three months in prison, alongside several senior military officers, for charges related to activities deemed harmful to democratic institutions. The verdict sparked intense international responses, notably with U.S. Secretary of State Marco Rubio criticizing it as a "witch hunt," while former President Donald Trump described it as "terrible." Financial sector stocks notably underperformed, with Banco Santander slipping by 1.1%, Itaúsa decreasing by 0.8%, and Bradesco falling by 1.1%, as traders reduced their exposure to companies perceived to be most susceptible to increased trade costs and political ripple effects.