The Ibovespa surged 2.6% to close at 192,114 in a highly volatile session ahead of Sunday’s first-round elections. The index opened with strong gains, supported by a favorable external backdrop, then gave back those advances on renewed political risk before recovering into the close. With the vote approaching, demand for hedging remains elevated.
When markets reopen on Monday, the election outcome, the new composition of Congress, and early signals on fiscal policy are expected to play a larger role in the pricing of Brazilian assets.
Externally, oil prices declined after the G7 agreed to release strategic reserves to ease mounting fuel costs, tempering concerns about energy-driven inflation. In addition, softer-than-expected US payrolls data supported credit-sensitive stocks as the likelihood of a Federal Reserve rate hike this month diminished.
Financials advanced, with Bradesco gaining 3.2%. Utilities were also higher, led by a 2.8% rise in Axia. Among blue chips, Petrobras climbed 2.8%, WEG added 3.8%, and Rede D’Or rose 3.6%. For the week, the Ibovespa was up 4.7%.