WRAPUP 3-Brazil markets hammered as Rousseff gains in polls

lunes 29 de septiembre de 2014 17:01 GYT
 

(Updates to close, adds interest rate yields, new poll)

By Asher Levine

SAO PAULO, Sept 29 (Reuters) - Brazilian financial markets took a beating on Monday after polls showed President Dilma Rousseff pulling past challenger Marina Silva ahead of Sunday's election.

The Brazilian real closed at its weakest level since December 2008 while the benchmark Bovespa stock index notched its biggest one-day loss in over three years.

A poll released late on Friday by research firm Datafolha showed Rousseff with 47 percent of voter intention against Silva's 43 percent in a potential second-round runoff. Silva had once led by as much as 10 points in a potential runoff.

Another poll released just before market close on Monday showed Rousseff with 47.7 percent in the second round, against Silva's 38.7 percent.

Brazilian investors have been heavily critical of Rousseff's government for implementing policies that have gone against minority shareholder interests in state-run companies and a tendency to enact one-off stimulus measures rather than structural reforms.

The real plunged as much as 2.54 percent in early trade to 2.478 per dollar before paring losses to close about 1.29 percent lower at 2.4552 per dollar.

Many traders see Brazil's risk premium declining under a different administration, which would help attract foreign investment and support the real.   Continuación...