The Ibovespa edged up to trade above 186,500 on Thursday, gaining some traction after three straight sessions in the red on support from banks and commodity producers. The IBC-Br index, a key proxy for GDP, inched down by 0.2% in December following its surge in November, maintaining the view that the BCB will deliver the first rate cut of a new easing cycle next month. Banking stocks traded higher, with Itau and Bradesco gaining 0.5% on hopes that lower rates will improve credit demand. Also, Petrobras gained more than 1% as heightened military activity in the Middle East lifted oil prices. On the downside, WEG fell nearly 2%, extending recent volatility despite previously strong earnings results.