19.10.202620:35:32UTC+00Brazilian Stocks Close Lower Amid Election Uncertainty

The Ibovespa slipped 0.2% to close at 205,079 on Monday, giving up earlier gains as credit-sensitive stocks ended the session mixed. Brazilian assets lacked a clear direction, with investors cautious at the start of the week ahead of the presidential runoff. Polls by BTG/Nexus and AtlasIntel indicated weakening support for Flávio Bolsonaro and rising support for Lula, though Bolsonaro remained in the lead in both surveys. The BTG/Nexus poll pointed to a statistical tie, while AtlasIntel showed Bolsonaro’s advantage still above the margin of error.
Despite the absence of detailed policy proposals from Bolsonaro, markets see his candidacy as more likely to deliver fiscal reforms, including spending cuts, which are considered key to lowering interest rates. Among financials, performance was mixed: Itaú fell 0.4% and Bradesco lost 1.3%, while Banco do Brasil advanced 1.3% and B3 climbed 1.8%. Utilities were mostly weaker, with Axia down 1.3%. Petrobras also dragged on the benchmark, dropping 2.8%.