FX.co ★ Ibovespa Gains as Investors Await Copom Announcement

The Ibovespa advanced 1% on Wednesday, closing at 167,292 points ahead of the Brazilian Central Bank’s monetary policy decision. The Copom is expected either to deliver another cut in the Selic rate or to keep it unchanged at 13.75%. The latest Focus survey signals a potential reduction to 13.50%, but persistent inflation pressures, a stronger US dollar and fiscal risks have increased uncertainty. At its September meeting, the Copom cut the Selic from 14% to 13.75%, while emphasizing the need to closely monitor risks before proceeding with further easing.

Financial stocks outperformed, with Itaú gaining 2.9% and Bradesco adding 3%. Exporters also rallied on optimism over possible progress in trade negotiations after the Republican Party’s defeat in the US midterm elections. WEG climbed 1.9%, Embraer advanced 2.9% and CSN rose 4.6%, while CSN Mineração surged 16.5%, also buoyed by news of the planned sale of CSN’s cement unit. Higher iron ore prices supported the mining sector, lifting Vale by 3.7%. In contrast, Petrobras dropped 7.4% as international oil prices slumped.