Brazil's currency, stocks jump after Flavio Bolsonaro scores first-round upset
EWZ•Brazil's benchmark stock index rose more than 9% and the real strengthened more than 4% after Flavio Bolsonaro finished first in the presidential election's first round with 47% of votes. He will face incumbent Luiz Inacio Lula da Silva, who won about 45%, in an October 25 runoff.
1. Markets rally after vote
Brazilian assets rallied after Flavio Bolsonaro outperformed polls to finish first in Sunday's election round. The Bovespa gained more than 9%, while the real strengthened more than 4% against the U.S. dollar, moving below 5.00 per dollar from around 5.22.
2. Runoff and reform agenda
Bolsonaro will face Lula in the October 25 runoff. Gains by Bolsonaro allies in Congress could make it easier for him, if elected, to pursue tighter public spending, privatizations and tax cuts, analysts said. Shares in Magazine Luiza, B3, BTG Pactual, Cyrela and Cosan each jumped more than 20%, while Suzano fell as much as 8.5%.
