FX.co ★ Ibovespa Jumps to Near Four-Month High

The Ibovespa jumped 3% on Wednesday to close at 185,205, approaching a four-month high after a new election poll showed President Lula and Senator Flávio Bolsonaro in a statistical tie. In a potential runoff, Lula and Bolsonaro registered 42% and 41% of voting intentions, respectively. Investors generally view Bolsonaro as more fiscally conservative, a stance that stands out amid high interest rates and subdued business activity.

On the macro front, bond yields declined after GDP data revealed a drop in household consumption, while industrial production rebounded but remained below expectations. In equities, financials outperformed: Banco do Brasil advanced 4.9% and Itaú rose 3.8%. The exchange operator B3 climbed 3.8% after tax assessments totaling R$2.2 billion were canceled.

Utilities also traded higher, with Axia up 3.4% and Sabesp gaining 4.2%. In commodities, Vale added 3.2% despite weaker iron ore prices, and Petrobras rose 2.8% as oil prices recovered. Among retailers, Magazine Luiza soared 16.9% following the announcement of a partnership with Mercado Livre, while Azzas jumped 11.3% after unveiling plans to split its operations into two separately listed companies.