Ibovespa Slips on Losses in Finance and Mining
The Ibovespa edged below 206,000 on Wednesday but remained 7% higher since the start of the week as markets gauged the outlook on earnings and interest rates should Presidnetial candidate Flavio Bolsonaro win the election runoff this month. Bolsonaro finished the first round of elections ahead of incumbent President Lula, pushing the index to a record high. Banks and financial services companies led those gains as the resulting rally in bonds and credit improved the outlook for the sector. Today, Vale fell nearly 2% ahead of the reopening of Chinese iron ore markets on Thursday following the National Day holiday. CSN Mineração (-1%) and steelmakers also posted losses. Other laggards included Ambev (-1.5%) and Embraer (-2%).
The Ibovespa edged below 206,000 on Wednesday but remained 7% higher since the start of the week as markets gauged the outlook on earnings and interest rates should Presidnetial candidate Flavio Bolsonaro win the election runoff this month. Bolsonaro finished the first round of elections ahead of incumbent President Lula, pushing the index to a record high. Banks and financial services companies led those gains as the resulting rally in bonds and credit improved the outlook for the sector. Today, Vale fell nearly 2% ahead of the reopening of Chinese iron ore markets on Thursday following the National Day holiday.
CSN Mineração (-1%) and steelmakers also posted losses. 5%) and Embraer (-2%).