The Brazilian stock market opened on Monday with extremely negative dynamics after the victory of Lula da Silva in the second round of the presidential election. While part of the trend is driven by the negative sentiment that marks the day in international markets, following the release of less encouraging economic data in China, there are certain factors in Brazil that are hurting the local stock market.
As expected, after trading in some derivatives traded in Asia and on the premarket of the New York Stock Exchange, the Brazilian stock market opened significantly lower: in the first minutes of trading iBovespa index fell 2%.
One of the actions that collect the most expressive drops are those of Petrobras, whose bonds fell 6.9%. This fall will come from the belief that Lula da Silva could thwart Bolsonaro’s plans to privatize not only Petrobras, but other Brazilian state-owned companies as well. Another stock with a big drop is Banco de Brasil, which fell 4.5%.
The Brazilian stock market opened sharply lower this Monday.
On Friday, the Brazilian stock market fell 0.4%, missing a day that was very positive in international markets, including the New York Stock Exchange. Uncertainty about the outcome of what was supposed to be the most intense election in history prevented investors from taking large positions one way or another, so the session ended with a slight decline.
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