Ibovespa Jumps on Election Trade
The Ibovespa rose 1.6% to close at 208,296 on Tuesday, supported by a new election poll and a positive external backdrop. A Real Time Big Data poll released on Monday showed Flávio Bolsonaro leading President Lula in a presidential runoff, with 52% of valid votes against 48%. Although Bolsonaro has yet to detail his policy plans, investors view his candidacy as more likely to bring fiscal reforms, including spending cuts, which could help lower interest rates. Meanwhile, easing oil prices provided relief to credit-sensitive sectors pressured by energy-driven inflation. Major banks advanced, with Itaú and Bradesco each gaining around 2.9%. Among other financials, B3 jumped 5.4%. Utilities also rose, with Axia up 0.9%, while retailers posted sharp gains, led by Magazine Luiza, which soared 14.8%. In contrast, Vale fell 1.4% as Chinese iron ore prices declined.
The Ibovespa rose 1.6% to close at 208,296 on Tuesday, supported by a new election poll and a positive external backdrop. A Real Time Big Data poll released on Monday showed Flávio Bolsonaro leading President Lula in a presidential runoff, with 52% of valid votes against 48%. Although Bolsonaro has yet to detail his policy plans, investors view his candidacy as more likely to bring fiscal reforms, including spending cuts, which could help lower interest rates. Meanwhile, easing oil prices provided relief to credit-sensitive sectors pressured by energy-driven inflation.
Major banks advanced, with Itaú and Bradesco each gaining around 2.9%. Among other financials, B3 jumped 5.4%. Utilities also rose, with Axia up 0.9%, while retailers posted sharp gains, led by Magazine Luiza, which soared 14.8%. In contrast, Vale fell 1.4% as Chinese iron ore prices declined.