- Brazilian Real surged 3% after Flavio Bolsonaro won first election round against Lula Da Silva
- Flavio Bolsonaro secured 47% votes, Lula Da Silva received 45% in Sunday's election count
- MSCI Brazil ETF rose over 16%, with Itau Unibanco and Petrobras stocks also increasing
The Brazilian Real, the country's official currency, jumped 3% on Monday after right-wing candidate Flavio Bolsonaro, the son of former president Jair Bolsonaro won the first round of elections against the incumbent Head of State Lula Da Silva.
Former president Jair Bolsonaro is carrying a 27-year prison sentence on charges of leading a failed coup after his defeat in the 2022 election.
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Justice Cármen Lúcia found him guilty of of attempting to overthrow the government, leading an armed criminal organisation, seeking the violent dismantling of Brazil's democratic rule of law, and two additional counts linked to property damage during the Jan. 8, 2023, storming of government buildings in BrasÃlia.
As per Sunday's vote count, Flavio Bolsonaro had 47% of the votes while current President Lula Da Silva had 45% of the vote share, according to reports.
Markets in Brazil are expected to rally as per reports with MSCI Brazil ETF listed in Frankfurt surging more than 16%. Stocks of Brazilian companies listed outside of the country such as Itau ​Unibanco and Petrobras also saw an uptick.
Brazil's overseas debt securities also advanced, the 2056 bond bid at 93.5 cents per dollar, up 1.45 cents, as per Tradeweb data cited by Reuters.
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Flavio Bolsonaro stated that he was more "centred" than his father, referring to himself as "more moderate, more measured" as per an interview. He said that he differed from his father with regards to topics such as vaccination, adding that he took "two doses of AstraZeneca".
He further pitched himself as a fiscal conservative in contrast to the economically left-leaning Lula Da Silva. Bolsonaro emphasised on "fiscal balance, reduced public spending, modernisation of the State and an obsession with lower taxes" in his interview, according to Reuters.
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