Political developments in Brazil and Spain overnight are adding volatility to certain overseas markets, highlighting mounting pressure on failing left-wing regimes.
In Brazil, right-wing Senator Flávio Bolsonaro's first-round lead over socialist President Luiz Inácio Lula da Silva significantly strengthens his position heading into the Oct. 25 runoff. A Bolsonaro victory would shift Latin America's largest GDP to the right, reinforcing a broader regional once-in-a-generation realignment from unhinged leftist regimes to common-sense right-wing governments.
Brazil's political pendulum is swinging right after years of toxic socialism, and investors are cheering on Monday morning:
BANKS, FINANCIAL FIRMS
- Banco Bradesco: +10%
- Itau Unibanco Holding: +11%
- NU Holdings: +9.5%
- Inter & Co.: +11%
- Banco Santander (Brasil): +3.5%
- PagSeguro Digital: +14%
- StoneCo: +12%
- PicS: +6.2%
STEEL, METAL & MINING
- Companhia Siderurgica Nacional: +9.5%
- Vale: +6.5%
- Gerdau S.A.: +7.0%
AERO, OIL & GAS AND OTHER SECTORS
- XP Inc.: +15%
- Ambev: +8.4%
- Embraer: +6.3%
- MercadoLibre: +7.0%
- Telefonica Brasil: +8.1%
- Companhia Energetica de Minas Gerais: +7.0%
- Companhia Paranaense de Energia: +5.8%
- Petroleo Brasileiro: +7.0%
