The Ibovespa climbed nearly 1% on Monday, nearing the 207,000-point mark, as investors digested the first presidential debate between Flávio Bolsonaro and President Lula, held Sunday night. Polls released Monday by BTG/Nexus and AtlasIntel indicated a drop in voting intentions for Flávio and a rise for Lula, although the senator remained in the lead in both surveys. The BTG/Nexus poll pointed to a statistical tie, while AtlasIntel showed Flávio’s advantage still beyond the margin of error.
Although Bolsonaro has yet to present detailed policy proposals, market participants continue to view him as more inclined to implement fiscal reforms, including spending cuts, which are considered key to creating room for lower interest rates. Financial stocks mostly advanced, with Itaú, Itaúsa, and Banco do Brasil each gaining around 1%. Utilities also performed well, with Axia rising more than 1%. Among other highlights, Rede D’Or gained 2%, and Embraer added 1%. In contrast, Petrobras slipped 1% as the recent rally in oil prices lost momentum.
