Ibovespa gains after new presidential election polls
Brazil’s Ibovespa rose 1% to close at 177,419 on Monday following new presidential election polls. Major banks and Petrobras rose, with Petrobras up 3.4% as oil prices rebounded.
The Ibovespa rose 1% to close at 177,419 on Monday following new presidential election polls.
The BTG/Nexus poll showed President Lula with 46% of voting intentions in a potential runoff versus 45% for Flávio Bolsonaro, a technical tie.
Markets view Bolsonaro as more fiscally restrictive amid elevated domestic yields and weak business activity.
The AtlasIntel/Bloomberg poll showed Lula with 47.1% and Bolsonaro with 42.6%, narrowing Lula’s lead to 4.5 percentage points from 6.3 points in July.
General government gross debt rose to 82.5% of GDP in July.
Still, the government targets a primary surplus of 0.1% of GDP in 2027.
Finance Minister Durigan defended strengthening the current fiscal rule and said some social policies could cease to be “mandatory.” Major banks rose, led by Banco do Brasil, up 2.8%.
Petrobras jumped 3.4% as oil prices rebounded.
The Ibovespa fell 0.3% during August.