Ibovespa Gains as Investors Await Copom Announcement
The Ibovespa rose 1% to close at 167,292 on Wednesday ahead of the BCB’s monetary policy decision. Copom is expected to either cut the Selic rate again or hold it at 13.75%. The latest Focus survey points to a possible reduction to 13.50%, although inflation concerns, a stronger US dollar and fiscal risks have added uncertainty. At its September meeting, Copom cut the rate from 14% to 13.75% but stressed the need to monitor risks before further easing. Financial stocks advanced, with Itaú up 2.9% and Bradesco gaining 3%. Exporters also rallied on hopes of progress in trade talks following the Republican Party’s defeat in the US midterms. WEG rose 1.9%, Embraer gained 2.9% and CSN jumped 4.6%, while CSN Mineração soared 16.5%, also supported by the planned sale of CSN’s cement subsidiary. Higher iron ore prices lifted the mining sector, with Vale up 3.7%. Petrobras, however, sank 7.4% as oil prices plunged.
The Ibovespa rose 1% to close at 167,292 on Wednesday ahead of the BCB’s monetary policy decision. Copom is expected to either cut the Selic rate again or hold it at 13.75%. The latest Focus survey points to a possible reduction to 13.50%, although inflation concerns, a stronger US dollar and fiscal risks have added uncertainty. At its September meeting, Copom cut the rate from 14% to 13.75% but stressed the need to monitor risks before further easing.
Financial stocks advanced, with Itaú up 2.9% and Bradesco gaining 3%. Exporters also rallied on hopes of progress in trade talks following the Republican Party’s defeat in the US midterms. WEG rose 1.9%, Embraer gained 2.9% and CSN jumped 4.6%, while CSN Mineração soared 16.5%, also supported by the planned sale of CSN’s cement subsidiary. Higher iron ore prices lifted the mining sector, with Vale up 3.7%.
Petrobras, however, sank 7.4% as oil prices plunged.