Ibovespa Extends Post-Election Losses
The Ibovespa fell 0.5% to close at 175,710, extending losses after plunging 13.7% on Monday following President Lula’s re-election. Lula’s victory erased the reduction in the risk premium that followed the right-wing landslide in the first round. Investors had widely viewed a potential Bolsonaro government as more likely to rein in public spending, seen as essential to lowering interest rates. Major banks fell, with Itaú down 1.2% and Bradesco losing 1.4%. Santander shed 2.2% ahead of its earnings report on Wednesday. Petrobras dropped another 2% as oil prices declined, following an 8.2% plunge on Monday. Vale fell 2.1% ahead of its Thursday earnings report, after outperforming the index during Monday’s rout. Gerdau shed 2.7% despite strong results. WEG extended gains by 3.7% after reporting upbeat earnings last week. Ambev added 1.3% ahead of its results on Wednesday.
The Ibovespa fell 0.5% to close at 175,710, extending losses after plunging 13.7% on Monday following President Lula’s re-election. Lula’s victory erased the reduction in the risk premium that followed the right-wing landslide in the first round. Investors had widely viewed a potential Bolsonaro government as more likely to rein in public spending, seen as essential to lowering interest rates. Major banks fell, with Itaú down 1.2% and Bradesco losing 1.4%.
Santander shed 2.2% ahead of its earnings report on Wednesday. Petrobras dropped another 2% as oil prices declined, following an 8.2% plunge on Monday. Vale fell 2.1% ahead of its Thursday earnings report, after outperforming the index during Monday’s rout. Gerdau shed 2.7% despite strong results.
WEG extended gains by 3.7% after reporting upbeat earnings last week. Ambev added 1.3% ahead of its results on Wednesday.