Ibovespa closed the first week of September with its biggest weekly gain since January, rising 5.2% between Monday and Friday. The index managed to recover part of the losses that had pressured the stock market in the first half of August.
Analysts point out that the reading of economic slowdown, after the release of second-quarter GDP, and the forecast of tight elections were factors that helped boost the Stock Exchange at the beginning of this month.
Felipe Garcia, head of the trading desk at C6 Bank, explained that indicators become volatile and sensitive to electoral poll releases when these show competitiveness in a possible second round of elections.
According to him, despite no objective proposal, the discourse is that the opposition candidate would be more likely to make a larger fiscal adjustment, with a bit more credibility.
