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[BUSINESS] · Brazil, United States · 22 sources

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Ibovespa surges to 192,000 points ahead of Brazilian elections

The Brazilian stock market experienced significant volatility and growth in the final trading session before the first round of presidential elections. The Ibovespa index surged 2.63%, reaching 192,114.55 points, its highest level since April. This rally was supported by positive international sentiment following weak US labor market data, which showed only 29,000 jobs created in September, lowering expectations for aggressive interest rate hikes by the Federal Reserve.

Petrobras was a major driver of the market's performance. The company announced a new oil discovery in the Morpho well within the Foz do Amazonas Basin, located in ultra-deep waters off the coast of Amapá. Consequently, Petrobras shares rose, and the company reached a historic market capitalization of R$ 700 billion.

Despite the market gains, investor uncertainty remains high due to the upcoming election. The VIX Brasil, an indicator of market volatility, hit a new record high of 32.39 points. Analysts noted that while the Ibovespa rose, the market is pricing in significant risks associated with the political transition. Other notable performers included Hapvida, which saw shares jump over 11% due to expectations of operational improvements.

Entities

B3 · Federal Reserve · Flávio Bolsonaro · Hapvida · Ibovespa · Luiz Inácio Lula da Silva · Petrobras · Santander · Vale

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