The Ibovespa slipped below 206,000 on Wednesday but remained about 7% higher for the week, as investors assessed the outlook for earnings and interest rates in the event that presidential candidate Flavio Bolsonaro wins this month’s runoff election. Bolsonaro’s lead over incumbent President Lula in the first round had previously driven the index to a record high. Banks and financial services companies led those gains, supported by a rally in bonds and credit that brightened the sector’s prospects.
On Wednesday, Vale retreated nearly 2% ahead of Thursday’s reopening of Chinese iron ore markets following the National Day holiday. CSN Mineração slipped around 1%, and steelmakers also recorded losses. Other notable decliners included Ambev, down 1.5%, and Embraer, which fell 2%.
