Ibovespa Rises on Election Polls and Soft PCE Inflation
The Ibovespa rose 1.4% to close at 186,341 on Wednesday, supported by new election polls pointing to 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 runoff, according to Meio/Ideia and Indexa/Broadcast polls. The Meio/Ideia poll showed the candidates separated by just 0.5 percentage point 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-on-year in August, accelerating from a 1.9% increase in July. Major banks gained, with Itaú and BB both up 4.7% and Bradesco rising 4.1%. Utilities also advanced, with Sabesp gaining 1.4%. CSN Mineração rebounded 5.2% from Tuesday’s losses, when it lowered its production outlook, as Chinese iron ore prices rose. On the month, the Ibovespa gained 5%.
4% to close at 186,341 on Wednesday, supported by new election polls pointing to 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 runoff, according to Meio/Ideia and Indexa/Broadcast polls. 5 percentage point in a potential runoff. Meanwhile, US PCE inflation came in slightly below estimates, easing some concerns over further Fed rate hikes.
9% increase in July. 1%. 4%. 2% from Tuesday’s losses, when it lowered its production outlook, as Chinese iron ore prices rose.
On the month, the Ibovespa gained 5%.