FX.co ★ Ibovespa Gains on Softer Inflation Outlook

The Ibovespa climbed nearly 1% on Wednesday, surpassing the 157,000 mark following the release of softer inflation data, which bolstered expectations for several interest rate cuts by Brazil's central bank in the upcoming year. Inflation for the middle of the month decreased to 4.5%, marking the first reading within the central bank's target range. This shift occurred as the bank's monetary policy director, Nilton David, indicated that further rate hikes are not anticipated in the current base scenario. Major banking institutions experienced growth, with Itaú increasing by 0.6%, Bradesco by 0.7%, Itaúsa by 0.3%, and Caixa Econômica by 0.4% as investors awaited its earnings report. Vale advanced by 0.6% driven by stronger iron ore prices, supported by a modest rebound in demand from China. Petrobras moved up slightly with stable oil prices, while WEG saw a 1.8% increase, Gerdau 1.3%, Axia 0.2%, Cosan 1%, and Sabesp 0.7%.