FX.co ★ Ibovespa Rises Ahead of Fed and Copom Rate Decisions

On Wednesday, the Ibovespa increased by 0.4%, surpassing 144,500. This rise was buoyed by anticipation of a possible rate cut from the Federal Reserve and impending remarks from Chair Jerome Powell. Market consensus suggests a 25 basis point reduction, potentially adjusting the federal funds rate to between 4.00% and 4.25%. Historically, Brazilian equities have shown robust performance following U.S. rate cut cycles, with domestic sectors typically leading before the cycle begins and commodities rebounding afterward. In Brazil, it is anticipated that the Central Bank's Monetary Policy Committee (Copom) will maintain the Selic rate at 15%. In corporate developments, GPA's shares surged by 4.6% following its announcement of a R$500 million private capital increase, representing approximately 25% of its market capitalization. The banking sector saw gains with Itaú and Bradesco each advancing by 0.7%. Retailers also performed well, with Magazine Luiza climbing 4.2% and Casas Bahia rising 2.5%. Meanwhile, Petrobras experienced a modest gain of 0.2%, whereas Vale and CSN saw declines of 0.3% and 0.4%, respectively.