Brazil markets' Bolsonaro rally sends stock exchange to record high
EWZ•Brazil's Bovespa closed at a record 206,911.89 points after a 7.7% jump as Flavio Bolsonaro's stronger-than-expected first-round showing boosted markets. The real strengthened 4.1% to around 5 per dollar.
1. Markets hit records
Brazil's main stock exchange surged on Monday after Senator Flavio Bolsonaro won 47% of votes in the first round of the presidential election, ahead of incumbent Luiz Inacio Lula da Silva, who received about 45%. The Bovespa rose 7.7% to a record closing level of 206,911.89 points, its largest daily gain since March 24, 2020.
2. Political outlook
Bolsonaro will face Lula in a runoff on October 25. Gains by Bolsonaro's allies in Congress led analysts to say a friendlier legislature could make it easier for him, if elected, to pursue tighter public spending, privatizations and tax cuts.
3. Other market moves
The real strengthened 4.1% to around 5 per dollar. Brazilian stocks traded in the United States also climbed, including XP, up 33%, and Nu Holdings, up 13%; StoneCo and PagBank each rose more than 20%.
