FX.co ★ Ibovespa Slips as Investors Await BCB and Fed Decisions

On Monday, the Ibovespa index declined by more than 0.5%, dropping below the 158,500 mark. This decline was driven by investor attention on factors that could influence imminent decisions by the Central Bank of Brazil and the Federal Reserve. As the Monetary Policy Committee (Copom) is set to convene next week, there is an anticipation that the Selic rate will remain unchanged at 15%. Meanwhile, today's Focus survey indicated a marginal improvement in inflation projections for 2025, now adjusted to 4.43% from 4.45% reported a week earlier. Concurrently, the Federal Reserve is also meeting on the same day, with market expectations leaning towards a rate cut. The majority of major banks saw declines, with Itaú and Bradesco each falling around 1%. Additionally, Itaúsa experienced a nearly 1% drop, despite sanctioning payouts totaling BRL 8.722 billion, which includes BRL 8.522 billion in dividends. WEG decreased by 0.3% following its approval of a supplemental dividend alongside the announcement of a BRL 5.2 billion investment initiative spread over the next three years. In contrast, Americanas rose by more than 1% subsequent to the appointment of Sebastien Durchon as the new CFO and Investor Relations Officer. Oi experienced a surge of over 11% after a court ruling resulted in the release of BRL 517.4 million.