Trading Day: Nasdaq Highs, Brazil Surprise
Investors bet on fiscal restraint and reform after Bolsonaro’s surprise lead, with the Ibovespa jumping 7.7% and the real strengthening, traders said.
- On Monday, the iShares MSCI Brazil ETF surged 13% after first-round election results showed Flávio Bolsonaro leading with about 47% of votes, setting up a 25 October runoff against Lula, who held about 45%.
- Foreign investors interpreted the surprise election outcome as market-friendly, causing the US-listed Brazil ETF to jump about 10% in overnight trading, while Brazil's benchmark Selic rate remains fixed at 13.75%.
- Market attention shifts to today's 8:30 BRT BCB Focus report and 10:00 BRT S&P Global PMIs, as analysts weigh whether September's composite estimate of 48.5 indicates contraction in the dominant services sector.
- Friday's 2.63% gain has the Ibovespa index near 192,115 points, about 3.3% below the 52-week closing high of 198,657, leaving traders exposed to potential profit-taking today.
- Maintaining a 13.75% Selic rate preserves a ten percentage point carry over US yields; the central bank faces macro headwinds including a 1.2% decline in August industrial production.
123 Articles
123 Articles
Why Brazil’s Markets Rallied
“Global investors did not expect Flávio Bolsonaro to convincingly top the first round of Brazil’s presidential election, but now their expectations are running high that Latin America’s largest economy could soon be transformed,” Axios reports. “Should the right-wing candidate win the run-off on Oct. 25, nearly all of South America would become aligned with the […]
Tulsa World
Currency, stocks soar after Bolsonaro upset
SAO PAULO — Brazilian assets rallied on Monday after rightwing Sen. Flavio Bolsonaro outperformed opinion polls to finish first in the first round of Sunday's presidential election, with the Bovespa benchmark stock index gaining more than 8% and the country's…
Brazil Stocks Rocket Higher After Election: Bolsonaro's Runoff Chances Jump to More Than 80%
Flávio Bolsonaro, the son of former President Jair Bolsonaro, finished Sunday's vote with about 47% of valid ballots, compared with roughly 45% for his opponent and current Brazilian president, Luiz Inácio Lula da Silva.
On a day dominated by the electoral surprise of the first presidential round in Brazil, currencies and stock markets in Latin America closed with profits, while Wall Street set new peaks.
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