FX.co ★ Ibovespa Rises Ahead of BCB Decision

The Ibovespa inched back above the 170,000 mark on Wednesday as investors concentrated on upcoming monetary policy decisions from both the BCB and the US Federal Reserve. In Brazil, markets broadly anticipate a 25-basis-point cut in the Selic rate to 14.25%, though a pause remains on the table given the more challenging external environment, higher oil prices, and worsening inflation expectations.

As expected, the Federal Reserve kept its benchmark rate unchanged at 3.50%–3.75% but adopted a more hawkish tone, reinforcing the view that borrowing costs may stay elevated for longer. Even so, receding concerns over energy-driven inflation and rising bets on a more dovish stance from the BCB underpinned risk appetite.

In corporate highlights, banks outperformed: Itaú gained 2%, while Bradesco advanced 1.2%. WEG climbed nearly 3% after approving R$438.1 million in interest on equity. In contrast, Vale slipped more than 1%, pressured by weaker iron ore prices.