Brazilian Assets Set to Rally After Flávio Bolsonaro Takes First-Round Election Lead
Updated
Updated · Bloomberg · Oct 5
Brazilian Assets Set to Rally After Flávio Bolsonaro Takes First-Round Election Lead
3 articles · Updated · Bloomberg · Oct 5
Summary
Brazilian markets are poised to jump after Senator Flávio Bolsonaro finished ahead of President Luiz Inácio Lula da Silva in the first round of Brazil’s election.
That result was far stronger than investors had positioned for, making the vote a bullish surprise for local assets.
The market reaction centers on expectations that Bolsonaro’s lead could improve the outlook for Brazilian stocks, bonds and the currency.
Attention now shifts to the next stage of the election, where the durability of that lead will determine whether the initial rally holds.