São Paulo stock exchange surges after Flávio Bolsonaro election result
The Ibovespa, São Paulo's main stock index, had already closed higher on Friday, but after the first-round election results in Brazil the market opened at a new record.
On Sunday, Brazil witnessed both a shift in political power and a surge in its stock exchange. Flávio Bolsonaro, son of former President Jair Bolsonaro, is leading the race for presidency in the run-off, garnering 47% of the votes cast. In response, the Ibovespa index, the primary gauge for Brazilian shares traded on the B3 stock exchange, experienced an 8% increase.
The momentum continued as the B3 also closed higher on Friday, up by 2.46%. Market experts attribute this rise to the strong performance of Flávio Bolsonaro, whose campaign promises, such as eliminating taxes, addressing public debt, and privatizing state-owned enterprises, might usher in a new economic era for the nation. Should Flávio Bolsonaro win on October 25th, BTG Pactual analysts predict a potential 45% rise in the B3's shares.
Meanwhile, the Brazilian real also showed strength, exchanging for 4.98 reais to the dollar, a contrast from 5.22 at the close of Friday. While inflation has been under control and unemployment has reached a record low under President Lula da Silva's third term, Brazilians express concerns over declining purchasing power. Flávio Bolsonaro, representing the far-right Liberal Party, secured over 56 million votes (47.03%), whereas the left-wing contender Luiz Inácio Lula da Silva received backing from nearly 53.9 million voters (45.16%).
Written by urgent.news from Euronews Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
