FX.co ★ Ibovespa Slips as Rate Decisions Loom

The Ibovespa index experienced a slight decline on Wednesday, maintaining a position below the 139,000 mark, as markets proceeded with caution due to increasing tensions in the Middle East and the anticipation of significant interest rate announcements. The ongoing Israel-Iran conflict, now in its sixth day, has sparked concerns among investors about its potential broader economic repercussions. On a global scale, all eyes are on the Federal Reserve as it prepares to deliver its policy decision. Meanwhile, in Brazil, the Central Bank’s Monetary Policy Committee is poised to reveal the Selic rate. Market predictions are divided, with some forecasting it will remain at 14.75%, while others anticipate a 0.25 percentage point increase. In the corporate sector, Vale saw slight gains, Hapvida climbed by 0.5%, and Azul grew by 1%. Meanwhile, steel manufacturers experienced minor upticks with CSN advancing by 0.2% and Gerdau by 0.6%. Conversely, major banking institutions saw declines, with Bradesco and Banco do Brasil each slipping by 0.2% and Itaú dropping by 0.4%. Similarly, supermarket chains faced downturns, with Assaí decreasing by 1.6% and GPA by 0.6%.