FX.co ★ Brazilian Stocks Up on Rate Cut Hopes

The Ibovespa rose nearly 1% on Tuesday, moving above the 181,000 level as the central bank kicked off its Selic rate meeting. Markets are pricing in a cut of 0.25 to 0.50 percentage point, which could signal the start of a new easing cycle. In fixed income, bond yields edged lower, and major bank stocks traded higher.

Petrobras advanced more than 1.5% as oil prices climbed on renewed supply concerns following fresh Iranian attacks on the UAE, which have disrupted flows through the Strait of Hormuz. Vale also gained around 1%, supported by higher iron ore prices amid stronger Chinese demand for construction steel.

Elsewhere, Sabesp added 1.2% after posting robust Q4 2025 results and approving R$583.6 million in interest on equity for the fiscal year.