FX.co ★ Ibovespa Jumps Ahead of Central Bank Rate Decision

The Ibovespa index saw an increase of over 1%, reaching approximately 181,000 on Tuesday. This rise coincides with the Brazilian central bank's initiation of its monetary policy meeting, with an anticipated rate decision scheduled for Wednesday. Current predictions suggest that the Selic rate will remain steady at 15%, although there may be indications from policymakers regarding the anticipated timing and extent of rate reductions within the year. The yield curve saw declines, prompting gains in banking stocks, such as Itaú, which rose by 1.4%, and Bradesco, which increased by 1.7%. Additionally, Petrobras experienced a 0.5% uptick as oil prices surged due to a severe winter storm in the U.S. disrupting crude production. Meanwhile, Vale saw a 1.4% increase despite facing weaker iron ore prices. Embraer climbed 1.5% following the announcement of a new partnership with India's Adani Group to establish a regional transport aircraft venture in India. In other developments, Rede D’Or rose by more than 2%, Ambev increased by 1%, and WEG edged up by 0.6%. Utilities rebounded from previous downturns, with Axia rising nearly 2% and Sabesp gaining over 1%.