FX.co ★ Ibovespa Falls Ahead of Central Bank Decision

The Ibovespa slipped 0.6% to close at 189,579 on Monday, as investors braced for a busy week of corporate earnings and key central bank decisions. In Brazil, the central bank will announce its monetary policy decision on Wednesday, with markets largely expecting a 0.25 percentage point cut in the Selic rate, despite a recent uptick in headline inflation. The US Federal Reserve, in contrast, is widely expected to keep interest rates unchanged.

On the global front, oil prices climbed after US–Iran peace talks stalled, intensifying inflation concerns and prompting investors to further discount the likelihood of interest rate cuts in developed economies this year.

Among Brazilian equities, major banks weighed on the index: Itaú fell 0.9%, while Bradesco and Banco do Brasil each lost 0.8%. Utilities also traded lower, with Axia down 0.7% and Sabesp retreating 1.4%.

In the opposite direction, Petrobras advanced 0.4%, supported by higher oil prices. Gerdau gained 0.9% ahead of its earnings release, and WEG, which is also scheduled to report this week, rose 0.8%. Vale, however, slipped 0.4% ahead of its results due on Tuesday.