Ibovespa Wavers After BCB and Fed Meetings

The Ibovespa swung between gains and losses near the 168,000 mark on Thursday as investors assessed the monetary policy outlooks from BCB and the US Fed, alongside the signing of an interim peace deal between the US and Iran. Brazil’s central bank cut the Selic rate by 0.25 percentage points to 14.25% but signaled a longer timeline to bring inflation back to target, leaving its next steps open as it evaluates alternative interest rate paths. The US Federal Reserve, meanwhile, kept its benchmark rate unchanged and signaled a hawkish outlook. Banking stocks traded mixed, with Bradesco down more than 0.5%, Santander edging higher, and Itaú hovering near flat. Petrobras fell nearly 1% as oil prices declined after the US-Iran agreement aimed at ending the conflict and reopening the Strait of Hormuz. Vale also lost nearly 1% as iron ore prices edged lower.

The Ibovespa fell 0.7% to close at 168,454 on Wednesday as investors assessed monetary policy decisions from the BCB and the Federal Reserve. Markets had largely expected Brazil's central bank to cut the Selic rate by 25 basis points to 14.25%, although a pause remained possible amid a worsening external backdrop, higher oil prices, and deteriorating inflation expectations. As expected, the Fed left interest rates unchanged at 3.50%-3.75% but signaled a more hawkish outlook, reinforcing expectations that borrowing costs could remain elevated for longer and weighing on risk sentiment. Banks traded mixed, with Itaú rising 0.9% while Bradesco slipped 0.6%. Utilities also posted losses, with Axia down 1.4%. Vale fell 2% amid lower iron ore prices, while WEG advanced 2.3% after approving R$438.1 million in interest on equity.

The Ibovespa edged up above the 170,000 mark on Wednesday as investors focused on monetary policy decisions from the BCB and the US Federal Reserve. Markets largely expect Brazil's central bank to cut the Selic rate by 25 basis points to 14.25%, although a pause remains possible amid a worsening external backdrop, higher oil prices, and deteriorating inflation expectations. As expected, the Fed left interest rates unchanged at 3.50%-3.75% and signaled a more hawkish outlook, reinforcing expectations that borrowing costs could remain elevated for longer. However, easing concerns over energy-driven inflation and growing expectations of a dovish stance from the BCB supported sentiment. Banks posted gains, with Itaú rising 2% and Bradesco adding 1.2%. WEG advanced nearly 3% after approving R$438.1 million in interest on equity, while Vale fell more than 1% amid lower iron ore prices.