Dollar falls and Stock Exchange soars with strength from the corporate scenario

Weg, with a jump of almost 10%, opened the round of announcements in the morning. Vale and Petrobras, which have a strong influence on the Ibovespa index, also made steady progress - the mining company due to the publication of a production report; the state-owned company follows oil abroad, affected by the conflict in the Middle East.

The day also marks the beginning of the United States charging a 25% tariff on a set of Brazilian products. The measure could impact the flow of dollars to Brazil, but the federal government has been cautious in dealing with the issue.

At 4:05 pm, Ibovespa advanced 2.36%, to 177,426 points. The dollar fell 0.32%, quoted at R$5.054. Earlier, at 11:04 am, the currency reached R$5,050 at the day's low, the lowest intraday level in more than a month. The last time the dollar had reached a lower low was on June 16, when it fell to R$5.042. That day, however, it closed at R$5.089.

Kicking off the corporate disclosure calendar, Weg reported results above expectations.

Net profit in the second quarter was R$1.56 billion, a decrease of 2.1% in the annual comparison. Ebitda (earnings before interest, taxes, depreciation and amortization) reached R$2.21 billion, representing a drop of 2.1% year on year.

According to the company, performance was mainly impacted by the appreciation of the real and lower demand for renewable energy generation projects in Brazil.

The figures, however, came above the consensus of analysts, who expected net profit of R$1.52 billion with EBITDA of R$2.12 billion, according to data from LSEG. Citi analysts highlighted that despite weakness in revenue and cost pressures from copper and US tariffs, Weg demonstrated strong operational execution and cost management.

The shares jumped 9.67%, to R$46.58, and led the Ibovespa gains.

Vale is also featured in corporate news. The mining company, in a report released on Tuesday night, reported a 0.8% increase in iron ore production between April and June in the annual comparison.

In total, the company produced 84.3 million tons of iron ore, above the analyst consensus of 82.2 million tons compiled by Visible Alpha, with a boost from the S11D mine, in Pará, and projects in Minas Gerais. It is the highest volume for a second quarter since 2018.

Iron ore sales, in turn, totaled 79.7 million tons in the period, an increase of 3% year-on-year, reflecting the sale of stocks and increased production. With a strong influence on Ibovespa, shares rose 3.21%, to R$74.56.

The Stock Exchange is still riding the surge in oil prices abroad, which is boosting Petrobras by 2%. The movement of the commodity follows the intensification of tensions in the Middle East, following threats from United States President Donald Trump to increase attacks on Iran in the Kolang Gazla region, where there would be a heavily protected nuclear facility.

"We are going to attack this area very soon, and with great force," he said. The promise of military action comes at a time of growing anxiety among oil traders, with oil transit through the Strait of Hormuz having slowed sharply in recent days and global inventories falling to critically low levels.

The situation led the price of a Brent barrel, a global reference, to reach US$95.47, the highest value since June 11, when the commodity reached US$95.50. On this Wednesday's economic agenda, there is also the entry into force of United States tariffs on Brazilian products.

The Trump administration's decision affects around 3,000 items and was made following a Section 301 investigation by the USTR (Office of the US Trade Representative), which examines trade practices considered unfair.

The investigation concluded that Brazilian practices restrict the businesses of American farmers, workers, innovators and exporters - among them are: digital commerce, payment services, unfair tariffs, corruption, intellectual property, ethanol and illegal deforestation.

Exporters fear that the increase in tariffs will deepen the retraction in bilateral trade, which has already registered a drop of 12.8% in the first half of the year, according to data from the Mdic (Ministry of Development, Industry, Commerce and Services), closing at US$36.4 billion (R$184.8 billion), with a balance in favor of the United States at US$1.5 billion (R$7.6 billion).

Vice President Geraldo Alckmin (PSB) stated that the government does not intend to retaliate. "The idea is not retaliation. It is not. They say that, in a tit for tat, what can happen is that both of you will go blind. Reciprocity is to say 'we are being wronged and we want to correct this'. We have instruments to do so, at the appropriate time, in the appropriate way", declared Alckmin.

In the futures interest market, the day is one of slight increase, in parallel with the positive variation in Treasury yields and the increase in oil prices. At 4:06 pm, the DI (Interbank Deposit) rate for January 2028 was at 14.210%, an increase of 0.06 percentage points compared to the previous session. At the long end of the forward curve, the DI rate for January 2035 was 14.725%, an increase of 0.06 percentage points.

At the same time, the yield on the ten-year Treasury - a US fixed income bond, a global reference for investment decisions - rose 0.02 point, to 4.656%.

In New York, the stock exchanges take a more cautious stance before the release of the balance sheets of technology companies after the markets close this Wednesday, with emphasis on the results of Alphabet, owner of Google, and Tesla.

At 4:08 pm, the Dow Jones rose 0.08%, the S&P 500 fell 0.03% and the Nasdaq fell 0.31%.

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