FX.co ★ Ibovespa Slips on Monetary Policy Outlook

The Ibovespa slipped 0.1% to close at 168,277 on Thursday, as investors weighed monetary policy signals from Brazil’s central bank and the US Federal Reserve, along with 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 a longer horizon for returning inflation to target, keeping future policy moves open as it evaluates alternative interest rate paths. The US Federal Reserve, in contrast, left its benchmark rate unchanged while maintaining a hawkish policy stance.

In equities, banking shares were mixed: Banco Bradesco fell 0.5% and Itaú lost 0.8%, whereas Banco do Brasil advanced 0.6% and Caixa Econômica rose 1.7%. Utilities also showed a split performance, with Axia down 1.7% and Sabesp slipping 2%, while CPFL climbed 1.3% and Copel gained 3.4%. WEG outperformed, jumping 4.6% as investors positioned themselves ahead of a key corporate payout deadline.