Brazil: Ibovespa Retreats After Election-Driven Rally.

The Ibovespa fell 0.5% to close at 205,835 on Tuesday after hitting a record 206,912 in the previous session, when Flavio Bolsonaro finished ahead in Sunday’s first election round, defying most polls. The index was weighed by Petrobras (-2.8%) and Vale (-1.4%). Petrobras fell as the oil rally lost steam before prices edged higher late in the session. Vale extended losses ahead of the reopening of China’s iron ore market, which was closed from October 1 to October 7 for the weeklong National Day holiday. Banco do Brasil (-6.4%) and B3 (-2.7%) pulled back after surging 11% and 22.6%, respectively, on Monday. Other laggards included Axia (-3.1%), WEG (-1%) and Ambev (-1.5%). In contrast, Itau (+2%) and Bradesco (+4.4%) extended gains after rallying 10.4% and 13.6%, respectively, on Monday. Brazil’s trade surplus surged 146.4% year over year in September, above forecasts of $7.19 billion and marking the sharpest annual increase since January 2024.