From MercoPress · · 1m
São Paulo Stocks Jump 8% After Bolsonaro Wins
Bolsonaro edges Lula in first round, sparking 8% stock surge.
In brief
Bolsonaro edges Lula in first round, sparking 8% stock surge. Brazilian stocks rose 8% after Bolsonaro won 47% of votes in first-round election, with runoff scheduled for October 25. Originally reported by MercoPress.
First-round result
Flávio Bolsonaro won 47% of valid votes to Lula's 45% in Brazil's presidential election first round.
Stock market reaction
São Paulo Stock Exchange's Bovespa index rose 8% to 208,000 points in early trading.
Banking gains
Banks led the rally with Bradesco up 15.2%, Itaú up 14.4%, Nu Holding up 12.2%, Petrobras up 10.3%, and Vale up 6.4%.
Real currency movement
The real gained 1.4% against the dollar, trading at 5.14 reais.
Investor expectations
Investors see Bolsonaro as more likely to push fiscal tightening to allow high interest rates to come down.
Market caution
Analysts warn Bolsonaro needs clear signals to tackle economic problems before market confidence returns.
The essence
Brazilian stocks rose 8% after Bolsonaro won 47% of votes in first-round election, with runoff scheduled for October 25.
