17.06.202614:03:30UTC+00Ibovespa Rises Ahead of Central Bank Decision

The Ibovespa climbed nearly 1% on Wednesday, approaching the 171,000-point mark as investors concentrated on upcoming monetary policy decisions by the Brazilian Central Bank (BCB) and the US Federal Reserve. The consensus view is that the BCB will trim the Selic rate by 0.25 percentage point to 14.25%. However, a pause in the easing cycle is still on the table, given the deteriorating external environment, firmer oil prices, and worsening inflation expectations.

The Fed, now meeting for the first time under the leadership of Kevin Warsh, is widely expected to leave its benchmark interest rate unchanged.

In commodities, oil prices hovered near a three-month low, reflecting expectations that the Strait of Hormuz will reopen and following a warning from the International Energy Agency about a potential supply glut next year.

On the domestic equity front, financial stocks strengthened, with Itaú Unibanco, Banco Bradesco, and Itaúsa each advancing close to 1%. Utility names also gained ground, led by Auren Energia, which rose more than 1%. WEG added over 2.5% after approving R$438.1 million in interest on equity, whereas Vale retreated more than 1.5% in response to weaker iron ore prices.