Ibovespa Rises Following Election Polls and US Inflation
The Ibovespa rose about 1% to hover around 185,500 on Wednesday following new election polls indicating a tighter race and softer-than-expected US PCE inflation. President Lula and Flávio Bolsonaro entered the final days before the presidential election in a technical tie in a likely second round, according to Meio/Ideia and Indexa/Broadcast polls. The Meio/Ideia poll showed the candidates separated by just 0.5 percentage points in a potential runoff. Meanwhile, US PCE inflation came in slightly below estimates, easing some concerns over further Fed rate hikes. In contrast, Brazil’s PPI rose 2.5% year over year in August after increasing 1.9% in July. Major banks gained, with Itaú up more than 1% and Bradesco and BB rising over 1.5% each. Utilities also advanced, with Sabesp gaining 2%. Petrobras rose more than 1% as the oil rally resumed. Vale rebounded nearly 1% from Tuesday’s losses as Chinese iron ore prices rose.
The Ibovespa rose about 1% to hover around 185,500 on Wednesday following new election polls indicating a tighter race and softer-than-expected US PCE inflation. President Lula and Flávio Bolsonaro entered the final days before the presidential election in a technical tie in a likely second round, according to Meio/Ideia and Indexa/Broadcast polls. 5 percentage points in a potential runoff. Meanwhile, US PCE inflation came in slightly below estimates, easing some concerns over further Fed rate hikes.
9% in July. 5% each. Utilities also advanced, with Sabesp gaining 2%. Petrobras rose more than 1% as the oil rally resumed.
Vale rebounded nearly 1% from Tuesday’s losses as Chinese iron ore prices rose.