Ibovespa Drops as Investors Eye Presidential Runoff
The Ibovespa fell 1.1% to close at 204,120 on Thursday amid uncertainty over the presidential race and corporate earnings. On Wednesday, a Quaest poll showed Flávio Bolsonaro’s lead over Lula narrowing to one percentage point, leaving the candidates statistically tied just four days before Sunday’s presidential runoff. Many market participants believe a Flávio administration would be more likely to rein in public spending, although neither the candidate nor his economic advisers have outlined concrete fiscal adjustments. Datafolha is scheduled to release a new presidential voting-intention poll after the market close on Thursday. Financial stocks declined, with Itaú down 1.8%, Itaúsa losing 2.6% and Bradesco shedding 2.1% ahead of its earnings release later in the day. Vale dropped 4% amid falling iron ore prices, with the miner set to report results next week. WEG slipped 2.7% after plunging 7% on Wednesday following disappointing results.
The Ibovespa fell 1.1% to close at 204,120 on Thursday amid uncertainty over the presidential race and corporate earnings. On Wednesday, a Quaest poll showed Flávio Bolsonaro’s lead over Lula narrowing to one percentage point, leaving the candidates statistically tied just four days before Sunday’s presidential runoff. Many market participants believe a Flávio administration would be more likely to rein in public spending, although neither the candidate nor his economic advisers have outlined concrete fiscal adjustments. Datafolha is scheduled to release a new presidential voting-intention poll after the market close on Thursday.
Financial stocks declined, with Itaú down 1.8%, Itaúsa losing 2.6% and Bradesco shedding 2.1% ahead of its earnings release later in the day. Vale dropped 4% amid falling iron ore prices, with the miner set to report results next week. WEG slipped 2.7% after plunging 7% on Wednesday following disappointing results.