Ibovespa Fluctuates Ahead of Presidential Runoff
The Ibovespa fluctuated around the 204,000 mark on Friday in the final session before Brazil’s presidential runoff. A Datafolha poll showed Senator Flávio Bolsonaro and President Lula tied at 50% each of valid votes. Earlier polls also indicated a statistical tie, with Bolsonaro’s lead narrowing compared with previous surveys. Some market participants believe a Flávio Bolsonaro administration would be more likely to rein in public spending, although neither the candidate nor his economic advisers have outlined concrete fiscal adjustments. Financial stocks mostly traded lower, with Itaú edging down and Banco do Brasil and Itaúsa losing more than 0.5%. Bradesco fell nearly 2.5% despite reporting third-quarter earnings in line with market expectations and announcing a share buyback program. In contrast, Petrobras rose nearly 2% as oil prices climbed following fresh attacks by Iran-backed Houthi militants in Yemen against Saudi Arabia. Vale gained nearly 1% as iron ore prices rebounded.
The Ibovespa fluctuated around the 204,000 mark on Friday in the final session before Brazil’s presidential runoff. A Datafolha poll showed Senator Flávio Bolsonaro and President Lula tied at 50% each of valid votes. Earlier polls also indicated a statistical tie, with Bolsonaro’s lead narrowing compared with previous surveys. Some market participants believe a Flávio Bolsonaro administration would be more likely to rein in public spending, although neither the candidate nor his economic advisers have outlined concrete fiscal adjustments.
Financial stocks mostly traded lower, with Itaú edging down and Banco do Brasil and Itaúsa losing more than 0.5%. Bradesco fell nearly 2.5% despite reporting third-quarter earnings in line with market expectations and announcing a share buyback program. In contrast, Petrobras rose nearly 2% as oil prices climbed following fresh attacks by Iran-backed Houthi militants in Yemen against Saudi Arabia. Vale gained nearly 1% as iron ore prices rebounded.