FX.co ★ Ibovespa Breaks Record High

The Ibovespa index climbed 1.6% on Tuesday, reaching a new milestone of 185,674, as investor optimism regarding Brazil's imminent interest rate cuts and robust commodity markets overcame late-session market fluctuations. The release of minutes from the Central Bank's Copom meeting reinforced market expectations of a 0.5 percentage point rate reduction in March. Policymakers conveyed increased confidence in the effectiveness of the current tight monetary policy, highlighted decreased inflation risks, and noted improved economic stability, although they remained cautiously observant of the persistently tight labor market. Major market players drove the rally, with Vale surging 4.9% due to rising iron ore prices and renewed investment enthusiasm in Brazil's mining industry. Petrobras also saw a 1.4% increase, bolstered by stronger oil prices. While performance within the banking sector was mixed, the outlook of reduced funding costs offered general support. Additionally, utilities and domestic cyclical industries experienced gains, driven by enhanced expectations related to interest rate-sensitive demand.