🚨 DOLLAR PLUNGES MORE THAN 4% TO R$4.98 AFTER FIRST-ROUND SURPRISE
Brazilian markets opened Monday with a sharp repricing following the election results. Flávio Bolsonaro’s stronger-than-poll performance raised investors’ expectations of a possible shift in fiscal policy starting in 2027, strengthening the real and sending the dollar lower.
📈 Ibovespa futures rose more than 8% at the open.
📉 Interest-rate futures plunged, with declines of nearly 100 basis points at the longer maturities.
🇧🇷 The real strengthened sharply against the dollar.
Investors unwound some of the risk premium that had been priced into Brazilian assets ahead of the vote.
The market is now entering a new phase of repricing ahead of the runoff, scheduled for October 25.
Brazilian markets opened Monday with a sharp repricing following the election results. Flávio Bolsonaro’s stronger-than-poll performance raised investors’ expectations of a possible shift in fiscal policy starting in 2027, strengthening the real and sending the dollar lower.
📈 Ibovespa futures rose more than 8% at the open.
📉 Interest-rate futures plunged, with declines of nearly 100 basis points at the longer maturities.
🇧🇷 The real strengthened sharply against the dollar.
Investors unwound some of the risk premium that had been priced into Brazilian assets ahead of the vote.
The market is now entering a new phase of repricing ahead of the runoff, scheduled for October 25.
