2026.10.1520:33:22UTC+00Ibovespa Slides Following Election Runoff Polls

The Ibovespa fell 1.1% to close at 204,324 on Thursday as investors reassessed the political landscape ahead of Brazil’s presidential runoff later this month. Fresh polling data showed Flávio Bolsonaro’s lead over President Lula narrowing, cooling the optimism that had fueled a rally in Brazilian assets last week after the senator unexpectedly finished ahead of Lula in the first round.

Although Flávio Bolsonaro has yet to present detailed policy proposals, markets regard him as more inclined to advance fiscal reforms, including spending cuts viewed as crucial for bringing down interest rates. Still, doubts persist over how strictly a Flávio administration would adhere to fiscal discipline. Political pressure has already led him to reverse course and back an end to the six-days-on, one-day-off work schedule, which the Senate approved yesterday.

On the corporate front, Itaú slipped 1.3%, Banco do Brasil rose 1.8%, Axia and Petrobras each retreated 1.3%, and WEG declined 2.7%.