Ibovespa Lower as Copom Signals Caution

The Ibovespa fell 0.5% to below 177,000 on Thursday after the BCB stated that it will be cautious to deliver more rate cuts. On Wednesday, the central bank lowered the Selic rate by 25 basis points to 14.0%. Still, the Copom said it will maintain an appropriate degree of monetary restraint to ensure inflation converges to target and highlighted elevated global uncertainty. Financial stocks were mostly lower, with BB Seguridade down nearly 1%. Bradesco also lost nearly 1% after reporting a tenth consecutive quarter of profit growth, as investors focused on weaker credit quality indicators. Itaú extended gains by 1% following solid quaterly results. Axia rose over 1.5% after reporting a rebound in net profit. Petrobras gained near 1% ahead of its earnings release as oil prices rose.

The Ibovespa edged down 0.1% to close at 177,726 on Wednesday as investors awaited the BCB's interest rate decision and assessed another round of corporate earnings. Markets expect Copom to cut the Selic rate by 25 basis points to 14.0%, with attention focused on the accompanying statement for clues on whether another cut could follow in September. Financial stocks were mostly lower, with Bradesco down 0.8% and BB Seguridade losing 0.9%. In contrast, Itaú gained 0.7% after reporting a 7.8% annual increase in managerial recurring net income, in line with forecasts. Gerdau rebounded 1.7% after posting stronger-than-expected 2Q26 results, while RD Saúde led gains, rising 5.9% following its earnings release. Petrobras fell 1.3% as oil prices declined. Bradesco, Axia (0%), Auren (-1.1%), Brava (+2.6%), and Engie (-1%) are set to report earnings after the close.

The Ibovespa rose nearly 1% to trade above 179,000 on Wednesday as investors awaited the BCB's interest rate decision and assessed another round of corporate earnings. Later today, Copom is expected to cut the Selic rate by 25 basis points from the current 14.25%. Investors will closely watch the accompanying statement for signals on whether another rate cut could follow in September. Financial stocks led gains, with Itaú rising 2% after reporting a 7.8% annual increase in managerial recurring net income, in line with forecasts. Bradesco gained near 1% ahead of its earnings release after the close. Itaúsa gained 2% and Banco do Brasil advanced 1%. In contrast, Gerdau fell more than 5% despite posting stronger-than-expected 2Q26 results. Axia (+1%), Auren (+1.5%), Brava (-1%), and Engie (+1%) are also set to report earnings after the bell.