Ibovespa posts 9.88% monthly drop, worst since 2022, as election shifts narrative

Brazil's Ibovespa index fell 9.88% in October, closing below 170,000 after hitting record highs above 209,000, marking the steepest monthly decline since 2022. The drop follows a major sectoral rotation triggered by election outcomes that changed the market narrative. The scale of the reversal signals a sharp repricing of Brazilian risk assets, though the sustainability of the move depends on post-election policy clarity.

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