Ibovespa Falls Ahead of BCB Decision
The Ibovespa fell nearly 1% to trade below 186,000 on Wednesday ahead of the BCB’s monetary policy decision. The BCB is expected to announce a 25bps cut in the Selic after market close, marking the fifth consecutive reduction and the last Copom decision before the October presidential election. In contrast, the US Fed is expected to announce a 25bps rate hike later in the day, its first since 2023. The decision is being driven by persistently high inflation and rising global financing costs. Financials traded lower, with Banco do Brasil falling 2% and Bradesco shedding more than 0.5%. Petrobras fell more than 1% as oil prices retreated amid signs of rising US inventories and reports that Saudi Arabia is offering additional crude cargoes via Oman. Other notable laggards included Ambev and WEG, both down about 1%.
The Ibovespa fell nearly 1% to trade below 186,000 on Wednesday ahead of the BCB’s monetary policy decision. The BCB is expected to announce a 25bps cut in the Selic after market close, marking the fifth consecutive reduction and the last Copom decision before the October presidential election. In contrast, the US Fed is expected to announce a 25bps rate hike later in the day, its first since 2023. The decision is being driven by persistently high inflation and rising global financing costs.
5%. Petrobras fell more than 1% as oil prices retreated amid signs of rising US inventories and reports that Saudi Arabia is offering additional crude cargoes via Oman. Other notable laggards included Ambev and WEG, both down about 1%.