Brazilian markets rally on Bolsonaro first-round lead; spending-cut hopes questioned

Brazilian assets rallied after Jair Bolsonaro took a lead in the first round of the presidential election, with investors betting on a right-wing government pursuing fiscal austerity. However, analyst Monica De Bolle warns that expectations of drastic spending cuts may be overly optimistic, given political constraints. The market move reflects sentiment rather than confirmed policy direction, and uncertainty remains high ahead of the runoff.