Ibovespa Closes Higher Ahead of Presidential Runoff
The Ibovespa rose 0.5% to close at 205,083 on Friday in the final session before Brazil’s presidential runoff, recovering from earlier losses. A Datafolha poll showed President Lula and Flávio Bolsonaro tied at 50% each of valid votes. Earlier polls indicated a statistical tie. Some market participants view a potential Flávio Bolsonaro administration as more likely to rein in public spending, which they consider essential to lowering interest rates. However, neither the candidate nor his economic advisers have outlined concrete fiscal adjustments. The Ibovespa rallied to record highs after Flávio Bolsonaro finished ahead of Lula in the first round. Meanwhile, mid-month inflation came in below expectations, supporting equities. Banking stocks advanced, with BB gaining 3.3%. Bradesco added 0.7% following third-quarter earnings in line with market expectations and the announcement of a share buyback program. Petrobras rose 1.7% as oil prices rose. For the week, the Ibovespa fell 1.0%.
The Ibovespa rose 0.5% to close at 205,083 on Friday in the final session before Brazil’s presidential runoff, recovering from earlier losses. A Datafolha poll showed President Lula and Flávio Bolsonaro tied at 50% each of valid votes. Earlier polls indicated a statistical tie. Some market participants view a potential Flávio Bolsonaro administration as more likely to rein in public spending, which they consider essential to lowering interest rates.
However, neither the candidate nor his economic advisers have outlined concrete fiscal adjustments. The Ibovespa rallied to record highs after Flávio Bolsonaro finished ahead of Lula in the first round. Meanwhile, mid-month inflation came in below expectations, supporting equities. Banking stocks advanced, with BB gaining 3.3%.
Bradesco added 0.7% following third-quarter earnings in line with market expectations and the announcement of a share buyback program. Petrobras rose 1.7% as oil prices rose. For the week, the Ibovespa fell 1.0%.