FX.co ★ Ibovespa Wavers After BCB and Fed Meetings

The Ibovespa fluctuated between gains and losses around the 168,000 level on Thursday, as investors weighed monetary policy signals from both the BCB and the US Federal Reserve, as well as the signing of an interim peace agreement between the United States and Iran.

Brazil’s central bank cut the Selic rate by 0.25 percentage point to 14.25%, but indicated that returning inflation to target will take longer, leaving its next moves open as it evaluates alternative interest-rate paths. In the United States, the Fed left its benchmark rate unchanged while signaling a hawkish stance.

In equities, banking stocks were mixed: Bradesco slipped more than 0.5%, Santander inched higher, and Itaú traded near unchanged. Petrobras declined almost 1% as oil prices fell in the wake of the US–Iran deal, which aims to end the conflict and reopen the Strait of Hormuz. Vale also retreated close to 1% amid a slight pullback in iron ore prices.