FX.co ★ Ibovespa Edges Lower as Election Uncertainty Weighs

The Ibovespa inched lower on Thursday, hovering around 205,500 points, amid uncertainty over the presidential runoff and a busy corporate earnings calendar. On Wednesday, a Quaest poll showed Flávio Bolsonaro’s advantage over Lula shrinking to just one percentage point, leaving the two candidates statistically tied only four days before Sunday’s decisive vote. Many investors view a potential Flávio administration as more inclined to contain public spending, although neither he nor his economic team has yet presented concrete fiscal consolidation measures. A fresh presidential voting-intention survey by Datafolha is due for release after today’s market close.

In the equity market, financial stocks dragged on the index, with Itaú down 0.8% and Bradesco losing 1% ahead of its earnings report later in the day. Vale retreated 2%, pressured by weaker iron ore prices, as the miner prepares to release its results next week. WEG slipped 0.1%, extending the negative sentiment after yesterday’s 7% plunge on the back of disappointing earnings. On the positive side, Petrobras gained 1%, helping to cushion the index’s decline, supported by the resumption of the recent oil price rally.