Ibovespa falls 2.35% after election; Fed holds rates, dollar dips

Brazil's Ibovespa index fell sharply on Wednesday, dropping 2.35% to 171,582 points, as post-election adjustments continued to weigh on the market. Investors also monitored corporate earnings from Santander Brasil and Klabin while awaiting the U.S. Federal Reserve's interest rate decision. The Fed kept rates unchanged in the 3.75% to 4% range, a decision approved 10-2. The dollar rose 0.12% to R$5.3519, while Brazilian interest futures increased. Bank stocks fell broadly, with Itaú Unibanco down nearly 3%, though Petrobras gained 0.55% and Vale dropped over 3.3%. Santander Brasil reported a 28% decline in recurring net profit to R$2.89 billion, while Klabin's profit fell 18% to R$393 million. Senator Flávio Bolsonaro's departure to Miami reduced chances of contesting the election result, according to Citi analysts.