Brazil’s shares surge as presidential candidate Jair Bolsonaro gains ground

The Brazil elections are only a few days away and presidential candidate Jair Bolsonaro is taking the lead and is expected to make it to the second round. The Brazilian stock exchanges has been positively impacted with the rise in poll numbers of Jair Bolsonaro.

The iShares MSCI Brazil exchange-traded fund (EWZ) saw an increase 5.6% to match its 24 January best, while the Brazilian Bovespa index grew by 3.8% its biggest since 7 November 2016. The runoff election is expected to take place on October the 28 because none of the candidates are predicted to win majority vote in the first round.

Bolsonaro market-friendly policies are the main reasons for the boost in Brazil shares. Opponent Fernando Haddad, leader of working party is widely expected to return to not so favourable party policies which will lead to ballooning fiscal deficit and contributed to an unsustainable pension system.

Bolsonaro is also believed to have the best economic advisers with better understanding of the economic conditions face Brazil at the moment.

 

Source: cnbc.com

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