Ibovespa rises to 206,220 points on election poll and inflation

The Ibovespa rose 0.94% to 206,220.24 points on October 8, reaching its highest level since April. By the close of that session, the benchmark index had accumulated a gain of approximately 6% in the week following the first-round election. Meanwhile, the spot US dollar finished the session up 0.26% at 5.0241 Brazilian reals.

Brazilian assets reflected domestic political polling and upcoming macro releases on October 9. A Datafolha poll released on the evening of October 8 showed Senator Flavio Bolsonaro leading current President Luiz Inacio Lula da Silva with 49% against 45% of voter intentions for the presidential runoff. In New York, the iShares MSCI Brazil ETF rose 0.64% to 42.86 US dollars.

Investors also waited for the September IPCA consumer inflation figure, which has a median forecast of a 0.76% monthly increase according to Broadcast projections. The statistical release was scheduled for 9:00 local time on October 9.

In global markets, European equities traded higher, with London's FTSE 100 gaining 0.89%, Frankfurt's DAX adding 1.19%, and Paris's CAC 40 advancing 0.81%. US index futures were also positive, led by Nasdaq futures up 0.84%, S&P 500 futures up 0.43%, and Dow Jones futures up 0.20%. In commodities, Brent crude fell 1.31% to 102.91 US dollars per barrel, WTI dropped 1.16% to 90.43 US dollars per barrel, and gold rose 1.34% to 4,212.60 US dollars per troy ounce.