Ibovespa hits new closing high – US and Brazilian interest rates explain optimism

Expectations of interest rate cuts in the United States on Wednesday, the 17th – and the market’s view of a possible cut in Brazil by 2025 – drove the Ibovespa higher on Monday, the 15th, with the index reaching new records. The benchmark of the Brazilian stock market rose by 0.90%, reaching 143,547 points, hitting a new historical closing high by surpassing the 143,150 points of September 11. At its peak of the day, it reached 144,194 points, also an intraday record. Additionally, the rise in oil and most international stock exchanges also supported the positive scenario. Waiting for the Federal Reserve (Fed) decision, Western stock indices increased, while Treasury yields fell and hit Brazilian future interest rates, which also reflected the 0.53% decline in the Central Bank’s Economic Activity Index (IBC-Br) for July – more intense than the median estimate of -0.30%.