2025.08.1320:27:41UTC+00Ibovespa Tumbles After Rescue Package

On Wednesday, the Ibovespa index experienced a decline of 0.9%, closing at 136,687 points. This downturn was attributed to investor reactions to a government rescue package coupled with a series of unsatisfactory company performances. The "Sovereign Brazil" initiative encompasses approximately R$30–35 billion in credit, along with expanded Reintegra refunds and bolstered guarantee funds. These measures aim to mitigate export losses but also entail increased short-term fiscal obligations, leading to a reassessment of discount rates and equity risk premiums. Vale saw a decrease of about 3.2%, influenced by ongoing legal and financial concerns related to the 2015 Mariana dam disaster. Samarco's judicial recovery plan has converted around US$4.8 billion of debt into approximately US$3.7 billion of long-term, unsecured obligations as international litigation proceeds. Major companies such as Petrobras (-0.5%), Ambev (-0.9%), and Eletrobras (-1.2%) contributed to the overall slide in market performance.