Updated

Brazilian equities jumped following the first round of the country's presidential election on Sunday, October 3, with former president Jair Bolsonaro now viewed as a heavy favorite ahead of an October 25 run-off vote against incumbent Luiz Inácio Lula da Silva. The market rally reflects investor sentiment around Bolsonaro's strengthened political position and his pro-business economic policies. The shift signals market confidence in a potential Bolsonaro victory, which investors associate with pro-market reforms and reduced government intervention in the economy compared to Lula's incumbent administration.