Ibovespa Falls as Election Uncertainty Weighs

The Ibovespa fell 0.9% to close at 206,495 on Wednesday amid election-related uncertainty. The index opened higher but reversed course after a Quaest poll showed challenger Flávio Bolsonaro and incumbent President Lula nearly tied in the presidential runoff. The survey also found that 52% of respondents would “never” vote for Bolsonaro, compared with 47% for Lula, whose rejection rate fell six percentage points in a week. Although Bolsonaro has yet to detail his policy plans, investors view his candidacy as more likely to bring fiscal reforms that could pave the way for lower interest rates. Credit-sensitive stocks came under pressure, with financials mostly lower. Bradesco edged down, BB fell 0.4%, Itaúsa lost 0.6% and B3 erased earlier gains to close 0.8% lower. Retailers also mostly declined, with Magazine Luiza dropping 3.4%. Elsewhere, WEG plunged 7.3% after disappointing third-quarter margins. Vale fell 2.1% on lower iron ore prices. Petrobras lost 0.8% amid volatile oil prices.