By the tightest margin ever, former president and center-left icon Luiz Inácio Lula da Silva is Brazil’s new president-elect. To no one’s surprise, the Brazilian stock market has been highly volatile on Monday. After starting the day with a 2.12-percent nosedive (at 10:25 am, Brazilian time), the benchmark Ibovespa index was gaining 0.87 percent by noon.
Yesterday, banks and asset managers started to update their recommendations for state-owned companies and other sectors sensitive to the election result. JPMorgan reduced the guidance for Petrobras’ ADRs (securities traded on the New York Stock Exchange) from overweight (above average market exposure) to…