FX.co ★ Ibovespa Sets Fresh Record High

The Ibovespa index increased by 0.4%, reaching a close of 144,062 on Tuesday. This rise continues the trend of record gains as Brazil's central bank, the Copom, commenced its policy meeting. There is widespread anticipation that the Selic rate will remain steady at 15% on Wednesday. On the economic front, Brazil reported a drop in its unemployment rate to 5.6% for the quarter ending in July. This figure represents the lowest rate since 2012 and aligns with the lower end of market predictions, supporting the rationale for a cautious approach in monetary policy. In the United States, there is anticipation of a 25 basis point reduction in the Federal Reserve's rate decision on Wednesday, contributing to a weaker dollar and providing additional external support for the Brazilian real. In terms of individual stocks, BRF climbed by 5.1%, Marfrig by 6.0%, and Lojas Renner by 4.9%, leading the market rally. The rise in oil prices and expectations of lower future interest rates further bolstered the market's upward movement.