Brazil: Ibovespa Closes at a Record High.

The Ibovespa surged 7.7% to a record 206,912 on Monday, its biggest one-day gain in over six years, after Flavio Bolsonaro finished ahead of President Lula in the first election round, defying most polls. The result triggered a sharp repricing of Brazilian assets. Bolsonaro received 47.03% of valid votes, compared with 45.16% for President Lula. The senator is viewed by markets as more fiscally restrictive, amid elevated domestic yields and weak business activity. Bolsonaro outperformed the average of polls tracked by Goldman Sachs by more than four percentage points. Gains were broad-based, with financials leading the index. Itau soared 10.4%, Bradesco jumped 13.6%, BB rose 11% and B3 surged 22.6%. Other outperformers included Sabesp (11.6%) and Petrobras (8.2%). JPMorgan upgraded Brazil to Buy. Banks expect the index to extend its record-setting streak in upcoming sessions. The Ibovespa also set a record for trading volume, with more than 5 million trades during the session.