FX.co ★ Ibovespa Drops Ahead of Policy Decision

On Wednesday, the Ibovespa index experienced a decline of approximately 0.4%, slipping below the 133,100 mark, as investors exercised caution in anticipation of upcoming monetary policy announcements from Brazil and the United States. Notable detractors included companies such as WEG, B3, and BRF, which saw their stock prices fall between 1% and 1.5%. Raia Drogasil notably plunged around 9% after revealing disappointing results for the first quarter. Conversely, BB Seguridade and Suzano emerged as leading gainers, posting increases of over 2% and 1%, respectively. Turning to economic indicators, Brazil's industrial production saw a year-on-year rise of 3.1% in March, building upon a revised increase of 1.5% in the previous month and surpassing expectations for a 1.4% rise. The anticipation that the Brazilian Central Bank's Copom will limit its upcoming interest rate hike to 50 basis points—establishing the Selic rate peak at 14.75%—coupled with the likelihood of the Federal Reserve holding rates steady, helped alleviate concerns over funding costs. Additionally, news of upcoming weekend negotiations between U.S. and Chinese officials bolstered broader market risk sentiment, even as investors remained vigilant ahead of both nations' central bank decisions.