03.09.202514:17:03UTC+00Brazilian Stocks Edge Higher Despite Political Uncertainty

The Ibovespa index experienced a modest increase of approximately 0.1% to surpass the 140,000 threshold on Wednesday. This rise follows a recent dip from previous record highs, as the Supreme Court continues its proceedings against former President Jair Bolsonaro and seven associates, accused of orchestrating a coup attempt in 2022. This high-profile trial, which has prompted US sanctions against Supreme Court Judge Alexandre de Moraes and visa suspensions for eight judges, is generating considerable political uncertainty and influencing investor behavior. Both Bolsonaro and his alleged co-conspirators maintain their innocence, while Congress is under increasing pressure to consider an amnesty bill for participants in the pro-Bolsonaro protests of January 8. The discussion of this bill is scheduled to commence following the trial's conclusion on September 12. On the domestic economic front, industrial production experienced a slight contraction, declining by 0.2% in July. Meanwhile, Brazil's Services PMI inched up to 49.3 in August, indicating only a marginal downturn. The performance of retailers and transformation industries was mixed, with Petrobras shares dropping by 0.7% and Vale shares rising by 0.3%.