Brazil Volatility Jumps as Trump Tariff Threat Roils Markets

Volatility in Brazilian assets soared as traders rushed to assess the endgame of President Donald Trump’s threat to impose 50% tariffs on all goods from the South American nation.

A measure of one-month swings for the real jumped to the highest since April as the currency went from the worst to the best in emerging markets in the span of an hour. It ended the day 0.7% higher, while stocks fell some 0.5% under pressure from exporters including planemaker Embraer SA. Swap rates were largely flat after a surge of almost 30 basis points in some contracts at open.