Brazil's Ibovespa closed October with its weakest monthly performance since June 2022, according to UOL Economia. The same report said the dollar gained 5.22% over the month.
The weekly picture was steeper still. G1 reported that the index dropped 18.12% in the week, its fifth-largest weekly decline since the Plano Real currency stabilization. The dollar reached R$ 5.44, per G1.
The selloff followed the first round of Brazil's presidential election and the prospect of a second round. CNN Brasil reported that one economist argued the market's reaction to the runoff may have been exaggerated. Brazil Journal noted that the stock exchange had fallen 16% with Lula in the race up to that point, adding that the damage was larger than it appeared. InfoMoney reported the index falling on external and fiscal concerns despite gains in Vale and Petrobras shares.
Taken together, the coverage points to a month defined by political uncertainty and fiscal worry rather than company-specific news. The figures from UOL Economia and G1 mark October as one of the more turbulent stretches for Brazilian assets in recent years.
Investors will now watch how the market behaves as the second round approaches and whether the dollar holds near the R$ 5.44 level cited by G1.
