The Zhitong Finance App learned that on Monday, Brazilian concept stocks strengthened collectively after the opening of the US stock market. As of press release, the financial platform XP Inc (XP.US) had risen more than 30%, the digital bank Nu Holdings (NU.US) had risen more than 13%, Petrobras (PBR.US) had risen more than 10%, VALE.US (VALE.US) had risen more than 4%, and MercadoLibre (MELI.US) had risen more than 6%. According to the news, the results of the first round of the Brazilian presidential election were released. Flavio Bosonaro led current President Lula by about 45% with about 47% of the vote. The performance was better than previously expected in the polls. The two will compete in the second round on October 25. Investors are concerned about its policy propositions to tighten finance, control public spending, and reduce corporate tax burdens.
In the results of the first round of voting in the presidential election, since none of the candidates won more than half of the votes, the current president, Labor Party candidate Lula, and the son of former President Bossonaro and Liberal Party candidate Flavio Bosonaro, who will compete in the second round, delivered separate speeches.
Lula delivered a speech that night in the southern Brazilian city of Sao Paulo, saying that his campaign team will seek voter support with a policy plan that emphasizes economic development and social inclusion, and called on voters who abstained in the first round to actively participate in the second round of voting. “We are in the second round and it's time to take the test.” Lula said, “Starting tomorrow, there will be a new competition between the two campaign teams.”
Flavio expressed satisfaction with the voting results at a press conference held in Brasilia, the capital of Brazil. “Brazil is hungry for change,” he said. If successfully elected, he will set out to solve the “real problems” Brazil faces.
Andrés Abadia, Latin America's chief economist at Penson Macroeconomics, said that Bosonaro's performance in excess of expectations and a shift in the political landscape of Congress to the right is expected to support the Brazilian stock market and put downward pressure on long-term bond yields.