FX.co ★ Ibovespa Rises Ahead of BCB Policy Rate Decision

The Ibovespa rose about 1%, trading above 167,000 points on Wednesday, ahead of the Brazilian Central Bank’s monetary policy decision. The Copom is set to decide whether to cut the Selic rate again or keep it at 13.75%. The latest Focus survey suggests a possible reduction to 13.50%, though inflation concerns, a stronger US dollar and fiscal risks have increased uncertainty. At its September meeting, the Copom lowered the rate from 14.0% to 13.75% but emphasized the need to closely monitor risks before proceeding with further easing. Financial stocks advanced, with Itaú gaining more than 2%, Bradesco nearly 2% and Santander over 1%. Exporters were also in focus, as the Republican Party’s defeat in the US midterm elections opened a potential path for Brazil to negotiate the tariffs imposed under the Trump administration. CSN climbed 2.5% and Gerdau added nearly 1%. Petrobras, however, slipped about 1% in response to weaker oil prices.