FX.co ★ Ibovespa Inches Higher on Fed Cut Hopes

On Monday, the Ibovespa index climbed, nearing the 155,000 mark. This rise was driven by anticipations of reduced interest rates from both the Federal Reserve and Brazil's Central Bank (BCB). Investors were buoyed by remarks from New York Fed President John Williams, who indicated that interest rates might decrease "in the near term," sparking increased hopes for another rate cut in December. On the domestic front, the Central Bank's Focus survey revealed a further dip in market inflation projections for 2025, with the IPCA forecast slightly easing from 4.46% to 4.45%. Among major banks, performance varied: Banco do Brasil saw an increase of 1.9%, while Itaú experienced a decline of 0.3%. Similarly, in the utilities sector, Axia rose by 0.3%, contrasting with Equatorial, which fell by 0.5%. Petrobras faced a 0.8% decline due to softer oil prices, whereas Vale gained 0.3% on the strength of firmer iron ore prices.