Ibovespa Surges on Election Polls and Softer US Inflation
The Ibovespa index rose by about 1% on Wednesday to around 185,500, driven by new election polls and a softer-than-expected US PCE inflation reading.
New polls indicate that President Lula and Flávio Bolsonaro are in a technical tie for the presidential election, with just 0.5 percentage points separating them in a potential runoff.
The US PCE inflation came in slightly below estimates, easing some concerns over further Fed rate hikes, which could have boosted investor confidence in Brazil's economy.
Major banks such as Itaú, Bradesco, and BB gained between 1-2%, while utilities like Sabesp advanced by 2%.
Petrobras also rose more than 1% as the oil market continued to recover, and Vale rebounded nearly 1% from Tuesday's losses following a rise in Chinese iron ore prices.