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02.10.202614:01:35UTC+00Brazilian Stocks Higher on Friday

The Ibovespa advanced more than 0.5% to trade around 188,500 points on Friday, with gains spread across most sectors amid a supportive external backdrop. Oil prices retreated as European governments weighed releasing strategic reserves to curb rising fuel costs, easing fears of energy-driven inflation. In addition, weaker-than-expected US payroll data bolstered credit-sensitive shares by dampening expectations of a Federal Reserve rate hike this month.

Major banks climbed, with Itaú and Bradesco each adding about 1.5%, while Banco do Brasil rose more than 2%. Utilities also performed well, led by Axia, which gained over 2%.

Friday is the final trading session before the first round of Brazil’s presidential election on Sunday. A poll released on Thursday showed President Lula and Senator Flávio in a technical tie in a potential second-round runoff. Also on Thursday, Bolsonaro pulled out of a scheduled debate just hours before it was due to begin, prompting the broadcaster to cancel the event, which had already been set to proceed without Lula.

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