Ibovespa Rises Following Presidential Debate and New Election Polls

The Ibovespa rose nearly 1% on Monday, approaching 207,000, as investors assessed the first presidential debate between Flávio Bolsonaro and President Lula, held on Sunday night. Polls released on Monday by BTG/Nexus and AtlasIntel showed a decline in voting intentions for Flávio and an increase for Lula, although the senator remained ahead in both surveys. The BTG/Nexus poll showed a statistical tie, while AtlasIntel put Flávio’s lead beyond the margin of error. Although Bolsonaro has yet to present detailed policy plans, investors view him as more likely to pursue fiscal reforms, including spending cuts, which are seen as essential to lowering interest rates. Financial stocks mostly advanced, with Itaú, Itaúsa, and BB each gaining around 1%. Utilities also rose, with Axia up more than 1%. Other notable gainers included Rede D’Or, up 2%, and Embraer, which added 1%. Meanwhile, Petrobras fell 1% as the oil rally stalled.