São Paulo stock exchange soars as Flávio Bolsonaro takes the lead

The Ibovespa, the main index on the São Paulo stock exchange, had already closed higher on Friday, but after Brazil’s first-round election results it opened at a new record.

Brazil woke up today not only to a new political reality, with two presidential candidates heading for a run-off and Flávio Bolsonaro in front, but also to a rise on the stock market.

Buoyed by Flávio Bolsonaro’s lead in last Sunday’s election, with 47% of the vote, the Ibovespa index (IBOV), the main benchmark for shares on Brazil’s leading stock exchange, B3, recorded an 8% jump. On Friday, it had also closed higher, up 2.46%.

According to some experts, the rally is due to the unexpectedly strong lead of former president Jair Bolsonaro’s son, which increases the chances of a victory that would open up a new fiscal and economic scenario for the country.

Flávio Bolsonaro’s proposals include the elimination of taxes, measures to control public debt and the privatisation of dozens of state-owned companies.

Analysts at BTG Pactual, Latin America’s largest investment bank, say a Flávio Bolsonaro victory on 25 October could lift B3 shares by as much as 45%.

The Brazilian real also gained ground during the day, trading at 4.98 reais to the dollar, compared with 5.22 recorded on Friday.

Although inflation has been kept under control and unemployment has fallen to a historic low during Lula da Silva’s third term, Brazilians complain of a loss of purchasing power.

Flávio Bolsonaro, of the far-right Liberal Party, took more than 56 <a href="https://warsaw.today/ekstraklasa-approves-budget-of-over-pln-367-million-for-the-2026-27-season/” title=”Ekstraklasa approves budget of over PLN 367 million for the 2026/27 season”>million votes (47.03%), while Luiz Inácio Lula da Silva, on the left, won the backing of almost 53.9 million voters (45.16%).

Source: www.euronews.com