EMERGING MARKETS — Brazil's weakness drags Latin American stocks lower
IMF cuts Latin American, Caribbean growth forecasts on energy shock, little AI boost BTG/Nexus poll shows close presidential race in Brazil Investors bullish on Brazilian right-wing candidate's win in October 25 runoff, BofA survey shows (Updates with afternoon trading) By Johann M Cherian and Niket Nishant Oct 13 (Reuters) — Brazil's stock benchmark led losses in Latin America on Tuesday, as uncertainty surrounding the presidential election weighed on investor sentiment ahead of the runoff later this month. The Bovespa index lost 1%, while the real weakened 0.69% to 5.021 per dollar after a BTG Pactual/Nexus poll showed the race between the two leading candidates remains close. Right-wing candidate Flavio Bolsonaro is expected to receive 48% of the vote, compared with 45% for leftist President Luiz Inacio Lula da Silva. However, with a 2-percentage-point margin of error, the poll did not show either candidate with an outright lead. The moves illustrate the fragility of investor sentiment as a resurgence in inflation pressure complicates the policy backdrop for the country's central bank. "There is a lot of uncertainty right now in terms of who's going to win," said Andres Abadia,
IMF cuts Latin American, Caribbean growth forecasts on energy shock, little AI boost BTG/Nexus poll shows close presidential race in Brazil Investors bullish on Brazilian right-wing candidate's win in October 25 runoff, BofA survey shows (Updates with afternoon trading) By Johann M Cherian and Niket Nishant Oct 13 (Reuters) — Brazil's stock benchmark led losses in Latin America on Tuesday, as uncertainty surrounding the presidential election weighed on investor sentiment ahead of the runoff later this month. 021 per dollar after a BTG Pactual/Nexus poll showed the race between the two leading candidates remains close.
Right-wing candidate Flavio Bolsonaro is expected to receive 48% of the vote, compared with 45% for leftist President Luiz Inacio Lula da Silva. However, with a 2-percentage-point margin of error, the poll did not show either candidate with an outright lead. The moves illustrate the fragility of investor sentiment as a resurgence in inflation pressure complicates the policy backdrop for the country's central bank. "There is a lot of uncertainty right now in terms of who's going to win," said Andres Abadia, chief LatAm economist at Pantheon Macroeconomics.
"Prediction markets are favoring Bolsonaro. But with the relatively good momentum that Lula has gathered in recent days, that has increased the real's sensitivity to any kind of election news. " According to a BofA fund manager survey, bullishness on Brazilian stocks picked up after Bolsonaro's strong showing in the first round of the election. Imf Warns Of Growth Risks Outside of Brazil, the enthusiasm was more contained as the International Monetary Fund trimmed its growth forecasts for Latin America and the Caribbean for this year and 2027.
Most of the region was getting little help from the AI boom that has allowed other economies absorb the energy shock from the war in the Middle East, the IMF said. 5% registered in 2025. 7%. Fiscal concerns in most of the region's major economies such as Brazil, Mexico and Colombia have acted as a drag.
Argentina and Venezuela are also recovering from years of debt distress. 62%. In Colombia, officials pushed back against budget cuts proposed by allies of the new right-wing president, saying they would crimp investigations and trials of human rights abuses tied to the ongoing internal conflict. 41%.
67%, tracking lower crude prices after the US announced a diesel supply deal with Russia earlier this week. Uncertainty over Mexico's free trade deal with the US and Canada, along with the Mexican interest rate outlook, has also limited gains for assets in the region's second-largest economy. com)