2014.09.0102:07:16UTC+00Brazilian stocks advance ahead of recession

Brazilian stock advanced in the trading session with the Ibovespa reaching its best month since January of 2012 as more and more surveys show current president Dilma Rousseff to lose in the upcoming elections while Brazil enters recession.

The Ibovespa Index gained 1.7% to 61,288.15 in the end of trading in Sao Paulo. The gauge is continuing its incline to a total of 4.9% for the week and a total of 9.8% for the month. All in  all, the index has amassed as much as 36%, rebounding from the year’s low as hopes of a better government will arise in the aftermath of the upcoming elections.

Itau Unibanco Holding lead the rally among the Brazilian stocks as the lender added 2.3% along with Banco do Brasil which had a 5.2% increase. Vale, meanwhile, plunged by 0.6%, extending its losing streak to its longest in the span of two years.

Strategist at Guide Investimentos, Luis Gustavo Pereira, commented to Bloomberg that the decrease in economic activity is a good image for the opposition as it proves that the current government's’ measures to improve the economy is not very effective.