Ibovespa Slides as BCB Signals Caution

2026-08-06 20:37 By Isabela Couto 1 min. read

The Ibovespa fell 1.2% to close at 175,546 on Thursday after the BCB signaled a cautious approach to further interest rate cuts.

The Copom lowered the Selic rate by 25 basis points to 14.0% on Wednesday but stopped short of signaling another cut in September, instead reiterating that future decisions will depend on incoming data.

Bond yields rose as the statement emphasized the need to maintain an appropriate degree of monetary restraint to ensure inflation converges to target and highlighted elevated global uncertainty.

Financial stocks posted losses, with Itaú down 1.3%, Banco do Brasil retreating 3.7%.

Bradesco fell 1.9% after reporting weaker credit quality indicators.

Axia erased earlier gains to close down 1% despite reporting a rebound in net profit.

Major exporters also declined after Brazil posted a weaker-than-expected trade surplus, with Vale down 1.7%, Gerdau and CSN losing 2.5%, Embraer falling 1.5%, and Minerva shedding 3%.



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Ibovespa Slides as BCB Signals Caution
The Ibovespa fell 1.2% to close at 175,546 on Thursday after the BCB signaled a cautious approach to further interest rate cuts. The Copom lowered the Selic rate by 25 basis points to 14.0% on Wednesday but stopped short of signaling another cut in September, instead reiterating that future decisions will depend on incoming data. Bond yields rose as the statement emphasized the need to maintain an appropriate degree of monetary restraint to ensure inflation converges to target and highlighted elevated global uncertainty. Financial stocks posted losses, with Itaú down 1.3%, Banco do Brasil retreating 3.7%. Bradesco fell 1.9% after reporting weaker credit quality indicators. Axia erased earlier gains to close down 1% despite reporting a rebound in net profit. Major exporters also declined after Brazil posted a weaker-than-expected trade surplus, with Vale down 1.7%, Gerdau and CSN losing 2.5%, Embraer falling 1.5%, and Minerva shedding 3%.
2026-08-06
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.
2026-08-06
Ibovespa Edges Lower Ahead of Rate Decision
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.
2026-08-05