Ibovespa Rises on Banking and Energy Gains

The Ibovespa rose more than 1% on Tuesday, hovering near 208,000, supported by gains in the banking and energy sectors. A Real Time Big Data presidential runoff poll released on Monday showed Flávio Bolsonaro with 52% of valid votes against President Lula, who had 48%. Although Bolsonaro has yet to present detailed policy plans, investors view his candidacy as more likely to bring fiscal reforms, including spending cuts, which are seen as important to lowering interest rates. Major banks traded higher, with Itaú and Bradesco each gaining around 1%. Meanwhile, Petrobras rose nearly 1% as international oil prices remained elevated amid escalating tensions in the Middle East. Elsewhere, utilities were mostly higher, with Sabesp rising nearly 2%. Retailers posted sharp gains, with Magazine Luiza jumping more than 6%. In contrast, Vale fell more than 1% as Chinese iron ore prices declined.