Ibovespa Slips Following Fed Hike
The Ibovespa edged lower to trade near the 186,000 mark on Wednesday following the US Fed’s monetary policy decision and ahead of the BCB’s. The Fed raised interest rates by 25 bps and a majority of FOMC members projected another hike this year. In contrast, the BCB is expected to announce a 25bps Selic cut after market close, marking the fifth consecutive reduction and the final Copom decision before the October presidential election. Financials were mixed, with private banks edging lower, while Banco do Brasil (+2.5%), BB Seguridade (+1.5%) and Caixa (+1%) posted gains. Petrobras weighed on the index, tumbling more than 2.5% as oil prices retreated amid reports that Saudi Arabia is offering additional crude cargoes via Oman. Miners also posted losses, with Vale and CSN Mineração down about 2%, while Usiminas fell more than 3%.
The Ibovespa edged lower to trade near the 186,000 mark on Wednesday following the US Fed’s monetary policy decision and ahead of the BCB’s. The Fed raised interest rates by 25 bps and a majority of FOMC members projected another hike this year. In contrast, the BCB is expected to announce a 25bps Selic cut after market close, marking the fifth consecutive reduction and the final Copom decision before the October presidential election. 5%) and Caixa (+1%) posted gains.
5% as oil prices retreated amid reports that Saudi Arabia is offering additional crude cargoes via Oman. Miners also posted losses, with Vale and CSN Mineração down about 2%, while Usiminas fell more than 3%.