Ibovespa Closes Higher on Wednesday

The Ibovespa index concluded Wednesday's trading session with a 0.7% increase, reaching 159,075, as investors absorbed recent developments in monetary policy and inflation data. Notably, the Federal Reserve's interest rate cut was anticipated by the markets, directing focus towards the guidance provided by Chair Jerome Powell. His comments suggested further easing would be contingent, contributing to a weaker dollar and bolstering emerging market assets, including Brazilian stocks. In Brazil, market participants were keenly observing the upcoming decision by the Central Bank of Brazil. The majority of analysts anticipated that the Selic rate would remain at 15%, looking for indications about potential rate cuts projected for 2026. The existing high interest rates in Brazil alleviated fears of sudden monetary easing and provided support to bond yields. Among the key movers, Vale rose by 1.8%, WEG by 1.7%, Bradesco by 1.3%, Suzano advanced by 2.4%, and Localiza increased by 2.2%.