Brazilian Stocks, Real Spike To 6-Month Highs After Bolsonaro Win

Following the socialist "Workers Party" loss last night in the Brazilian Presidential elections, markets are rejoicing (for now) with stocks and the currency strengthening on hopes of far-right winner Bolsonaro's confidence-inspiring hope for the beleaguered economy.

The Real surged to its highest since early May (though is fading off the day's highs)...

 

And the Brazil ETF is trading up around 5% in the pre-market (Ibovespa futures up around 4%)...

Win Thin, a strategist at BBH, said that while there may be some knee-jerk buying today, markets may be getting too excited with Bolsonaro's win:

"I think he too comes with a lot of baggage that markets are overlooking."

We will see if these gains hold.