Brazil stocks rally on far right election victory

Brazilian stocks rose sharply Monday after far-right presidential candidate Jair Bolsonaro left his opponents in the dust in the first round of voting.

The benchmark Brazilian Bovespa index gained 5.5 percent on Monday. The iShares MSCI Brazil exchange-traded fund (EWZ) jumped 7.2 percent and was on pace for its biggest one-day gain since March 17, 2016, when it rose 8.9 percent.

Bolsonaro garnered 46.7 percent of the votes in Sunday’s first round, much more than any other candidate. Former Sao Paulo Mayor Fernando Haddad came in second with 28.5 percent.

CNBC

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.