FX.co ★ Ibovespa Edges Higher on Petrobras Gains

The Ibovespa inched higher on Tuesday, trading near the 186,000 mark, supported by gains in Petrobras. Oil prices extended their rally amid supply disruptions in the Middle East, after Saudi Arabia shut down a key pipeline that bypasses the Strait of Hormuz on Monday. Shares of Petrobras advanced more than 1%.

On the monetary policy front, investors expect the Selic easing cycle to continue on Wednesday, with the benchmark rate projected to be cut to 13.75% from 14%, as recent inflation readings remain within the Brazilian central bank’s tolerance band. In contrast, the US Federal Reserve is widely anticipated to raise interest rates by 25 basis points.

Financial stocks were mostly flat, while utilities outperformed, led by Sabesp, which climbed more than 1%. Political uncertainty stayed elevated amid the ongoing Supreme Court crisis, and the latest election polls continued to point to a tight presidential race between President Lula and Flávio Bolsonaro.