Business · Markets · 1 day ago

Brazil’s Ibovespa rises above 200,000 as election optimism lifts stocks

Brazil’s Ibovespa rises above 200,000 as election optimism lifts stocks

Brazil’s Ibovespa stock index passed 200,000 points on 5 October, after rising 7.70% at the start of the week.

The market’s gains followed the first round of the presidential election, as investors became more optimistic about future reforms and control of public finances.

Brazil’s runoff vote is scheduled for 25 October.

Investors are watching for details of the next government’s economic team, fiscal framework and targets.

Clearer plans could help bring down long-term interest rates, which are seen as important for further gains in stocks.

Some forecasts put the Ibovespa at 240,000 to 250,000 points, but that is an outlook, not a guaranteed outcome.

Higher US and global bond yields are a counterweight to support from commodities such as oil and grains.

Sources

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