Brazilian financial stocks rise by double digits on presidential election news

U.S.-listed shares of Brazilian fintech and financial services companies surged by more than a tenth in early trading on Monday, following news that the South American giant is set for a runoff election. South America's biggest country saw right-wing candidate Flávio Bolsonaro secure 47% of the vote, defying expectations, while incumbent left-wing President Luiz Inácio Lula da Silva also received 47%, according to the Rio Times.

The pair will clash once more later in the month as neither candidate achieved the 50% threshold for a clean win. Bolsonaro, a senator and the son of a former imprisoned president, campaigned on fiscal adjustment and spending cuts, which are reportedly more investor-friendly, though some doubt his future fiscal responsibility. At 80 years old, Lula is serving his third non-consecutive term, having previously held the office between 2003 and 2011.

Regardless of the outcome, the markets are responding. Nu Holdings (NYSE: NU), the owner of Latin America's largest digital bank, saw its stock price climb over 12% in premarket trading, while shares of Brazil’s Banco Bradesco (NYSE: BBD) also rose by more than 12%. PagBank, a payments platform and financial services company based in São Paulo, experienced a 15% jump in its U.S.-listed stock price (NYSE: PAGS). Brazil's runoff election is scheduled for October 25.