Brazil: Ibovespa Rises on Election Polls and Soft PCE Inflation.

The Ibovespa rose 1.4% to close at 186,341 on Wednesday, supported by new election polls pointing to a tighter race and softer-than-expected US PCE inflation. President Lula and Flavio Bolsonaro entered the final days before the presidential election in a technical tie in a likely second-round runoff, according to Meio/Ideia and Indexa/Broadcast polls. The Meio/Ideia poll showed the candidates separated by just 0.5 percentage point in a potential runoff. Meanwhile, US PCE inflation came in slightly below estimates, easing some concerns over further Fed rate hikes. In contrast, Brazil’s PPI rose 2.5% year-on-year in August, accelerating from a 1.9% increase in July. Major banks gained, with Itau and BB both up 4.7% and Bradesco rising 4.1%. Utilities also advanced, with Sabesp gaining 1.4%. CSN Mineracao rebounded 5.2% from Tuesday’s losses, when it lowered its production outlook, as Chinese iron ore prices rose. On the month, the Ibovespa gained 5%.