FX.co ★ Ibovespa Falls as Election Uncertainty Weighs

The Ibovespa declined 0.9% on Wednesday, closing at 206,495 amid mounting electoral uncertainty. The index opened higher but reversed direction after a Quaest poll showed challenger Flávio Bolsonaro and incumbent President Lula virtually tied in the presidential runoff. The survey also indicated that 52% of respondents would “never” vote for Bolsonaro, versus 47% for Lula, whose rejection rate dropped six percentage points in a week.

Despite the lack of detailed policy proposals from Bolsonaro, investors see his candidacy as more likely to deliver fiscal reforms that could support lower interest rates. This backdrop weighed on credit-sensitive stocks, with most financial names retreating. Bradesco edged down, Banco do Brasil slipped 0.4%, Itaúsa fell 0.6%, and B3 reversed earlier gains to close 0.8% lower.

Retailers also traded mostly in negative territory, led by a 3.4% drop in Magazine Luiza. In other corporate moves, WEG sank 7.3% after reporting weaker-than-expected third-quarter margins. Vale lost 2.1%, pressured by falling iron ore prices, while Petrobras declined 0.8% amid volatile oil markets.