The Ibovespa inched higher to trade above 139,000 on Tuesday, as investors anticipated a potential Supreme Court lawsuit by the government challenging Congress’s repeal of the IOF tax hike. Finance Minister Fernando Haddad said the case may proceed pending approval by the Attorney General’s Office. Meanwhile, Brazil’s June PMI showed industrial activity at a two-year low.
President Lula attended the launch of the 2025/2026 Harvest Plan, which earmarks R$516.2 billion for commercial agriculture, a 1.5% increase from the prior cycle. On the corporate front, Embraer surged 4.4% after delivering jets to Paraguay’s Air Force and signing a deal with SAS to sell up to 55 aircraft. Eletrobras (+0.4%), Petrobras (+0.2%), Banco do Brasil (+0.2%), and Bradesco (+1.1%) also rose. Vale slipped nearly 1% amid volatility.
