The Ibovespa jumped 1.8% to close at 171,032 on Friday, driven by a broad-based rally in financial stocks. Politics remained at the forefront ahead of a new Datafolha survey on Brazil’s October presidential election, scheduled for release after the market close. Earlier in the week, a BTG/Nexus poll indicated a technical tie in a potential runoff between President Lula and Senator Flávio Bolsonaro, whom markets tend to view as more fiscally restrictive in the context of elevated domestic yields and subdued business activity.
Bond yields declined amid expectations of a tighter presidential race and a broadly weaker US dollar. In the banking sector, Itaú rose 2.9%, Bradesco gained 3.1%, Itaúsa advanced 2.5%, and B3 surged 5.2%. Utilities also traded higher, with Axia up 1.4% and Sabesp adding 1.9%. In the commodities space, Vale climbed 1.4% as iron ore prices firmed, while CSN Mineração jumped 4.8%, CSN surged 7.6%, and Usiminas rallied 7.9%. Embraer (-1%) and Petrobras (-0.1%) were among the few decliners.
