Brazil Stocks Set Record as Real Strengthens Before Copom Decision

Overview

• The Ibovespa closed up 1.72% at 153,294, setting record closing and intraday highs after touching 153,583.
• The dollar fell 0.7% to about R$5.36, with the real among the session’s top performers alongside other Latin American currencies.
• Traders expect Copom to keep the Selic at 15% and watch for a softer tone that could open the door to rate cuts from early 2026, including possible tweaks to the "prolonged" guidance.
• Brazilian rate futures eased, with short- and intermediate DIs marking intraday lows as positioning shifted for a less hawkish communication.
• U.S. equities rose on better‑than‑expected services PMIs and ADP payrolls, while the 36‑day shutdown and Supreme Court tariff hearings helped cap broader dollar gains.