Brazilian assets rise ahead of the October 25 runoff
Flávio Bolsonaro surprises, and investors adjust their expectations.
Brazil will decide its presidency in a runoff on October 25 between Luiz Inácio Lula da Silva and Flávio Bolsonaro, after a first round in which neither candidate secured a majority. Bolsonaro received more than 47% of the vote and beat Lula by nearly 2 percentage points, a better result than polls had anticipated. Markets reacted higher: the Bovespa rose 8%.
Investors view Bolsonaro as the more market-friendly candidate given his commitment to greater fiscal discipline, in a country whose deficit neared 10% of GDP in June. Prediction platforms now give him more than an 80% chance of winning. Even so, the campaign continues, and volatility could persist through October 25.
Brazil
Markets React to the First Round of the Election.
Brazilian assets rise ahead of the October 25 runoff
Flávio Bolsonaro surprises, and investors adjust their expectations.
Brazil will decide its presidency in a runoff on October 25 between Luiz Inácio Lula da Silva and Flávio Bolsonaro, after a first round in which neither candidate secured a majority. Bolsonaro received more than 47% of the vote and beat Lula by nearly 2 percentage points, a better result than polls had anticipated. Markets reacted higher: the Bovespa rose 8%.
Investors view Bolsonaro as the more market-friendly candidate given his commitment to greater fiscal discipline, in a country whose deficit neared 10% of GDP in June. Prediction platforms now give him more than an 80% chance of winning. Even so, the campaign continues, and volatility could persist through October 25.