Brazil: Ibovespa Jumps Ahead of Election.

The Ibovespa jumped 2.6% to close at 192,114 in a highly volatile session ahead of Sunday’s first round of elections. The index posted strong gains early in the session amid a favorable external backdrop, then erased them on political risks before regaining momentum. The proximity of the election keeps demand for hedging elevated. When markets reopen on Monday, the election result, the composition of Congress and signals on fiscal policy are likely to carry greater weight in the pricing of Brazilian assets. Meanwhile, oil prices fell after the G7 agreed to release strategic reserves to ease mounting fuel costs, reducing concerns over energy-driven inflation. Softer-than-expected US payrolls also supported credit-sensitive stocks as expectations of a Fed rate hike this month declined. Financials gained, with Bradesco up 3.2%. Utilities advanced, Axia rose 2.8%. Petrobras added 2.8%, while WEG gained 3.8% and Rede D’Or rose 3.6%. The Ibovespa added 4.7% on the week.