FX.co ★ Ibovespa Hits Record High After Election Result

The Ibovespa jumped nearly 7.5%, approaching the record 200,000 mark, after Flávio Bolsonaro finished ahead of President Lula in the first round of the presidential election, in a result that defied most polls and triggered a sharp repricing of Brazilian assets. Senator Bolsonaro secured 47.03% of valid votes, versus 45.16% for President Lula. Markets view the senator as more fiscally conservative, a stance that resonates amid high domestic interest rates and subdued business activity. Bolsonaro outperformed the average of polls tracked by Goldman Sachs by more than four percentage points. Gains were broad-based across the index, with major banks at the forefront: shares of Itaú and Banco do Brasil each climbed around 8%.