Latest Brazil Polls Upend Market Calm Over Sunday’s Election
- Lula’s chance of an outright win increased over the last week
- Traders still see election tighter than polls currently show
Luiz Inacio Lula da Silva, Brazil's former president, speaks during a campaign event in Sao Paulo, on Aug. 20.
Photographer: Victor Moriyama/BloombergThis article is for subscribers only.
Brazilian markets are losing the calm that had come to characterize them in the run up to Sunday’s presidential election.
The real and local stocks tumbled this week, while swap rates soared after a series of polls showed that Luiz Inacio Lula da Silva may get an outright victory in the first round, avoiding the need for a run-off. That would be the first time any candidate has gained such a resounding endorsement since 1998.