Flavio Bolsonaro beats expectations in Brazil's first-round vote, faces Lula in October 25 runoff
What happened
Brazilian Senator Flavio Bolsonaro won the first round of Brazil's presidential election on Sunday, October 4, taking roughly 47% of valid votes and beating the forecasts in most private surveys, which had expected President Luiz Inacio Lula da Silva to lead by around three percentage points. Lula picked up 44.9% with nearly 99% of votes reported. The two advance to a runoff on October 25, a race analysts describe as a technical tie within polling margins. Reuters reported that Bolsonaro's stronger-than-expected performance may bolster Brazil's currency and stock market, which had already risen on the prospect of the business-friendly challenger; global markets reporting on Monday morning expected Brazilian assets to jump at the open.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- Brazilian equities (Bovespa) — expected to open higher on the challenger's surprise showing
- Brazilian real (BRL) — pollsters missed the right; currency strength likely extends
- EWZ (iShares MSCI Brazil ETF) — direct U.S.-listed exposure to Brazilian equities
- Petrobras (PBR) and Vale (VALE) — the large-cap energy/mining ADRs most U.S. investors hold; Brazil-facing banks such as Itau Unibanco also repriced on runoff expectations
- Broader emerging-markets complex — LatAm-rightward wave narrative; modest spillover into EM ETFs