FX.co ★ Ibovespa Hits Fresh Record High

The Ibovespa index climbed 1.7% to reach a new record high of 158,555 on Wednesday. This surge was driven by softer inflation data, which bolstered expectations for multiple interest rate reductions by Brazil's central bank in the coming year. Mid-month inflation figures eased to 4.5%, marking the first time they have fallen within the Central Bank of Brazil's target range. According to central bank monetary policy director Nilton David, additional rate hikes are no longer part of the main forecast. Major banks, including Banco do Brasil, Santander, Bradesco, and Itaúsa, saw gains ranging from 1.1% to 2.6%, buoyed by positive credit outlooks. Vale experienced a 1.5% rise due to better iron ore prices, supported by a modest rebound in Chinese demand. Meanwhile, Petrobras saw a slight decrease as oil prices remained steady. WEG emerged as one of the day's top performers, soaring 3.4%.