The Ibovespa slipped nearly 1% on Wednesday, dropping below the 186,000 mark ahead of the Brazilian Central Bank’s monetary policy announcement. The BCB is widely expected to deliver a 25 bps cut to the Selic rate after the market close, which would be the fifth consecutive reduction and the final Copom decision before the October presidential election.
In the opposite direction, the US Federal Reserve is expected to raise its benchmark interest rate by 25 bps later in the day, marking its first hike since 2023. The move is being driven by persistently elevated inflation and increasing global financing costs.
Financial stocks were under pressure, with Banco do Brasil declining 2% and Bradesco losing more than 0.5%. Petrobras slid over 1% as oil prices retreated amid indications of rising US crude inventories and reports that Saudi Arabia is offering additional cargoes via Oman. Among other notable laggards, Ambev and WEG each fell by around 1%.
