2014.09.1100:30:19UTC+00Brazilian stocks drop on pro-Rousseff polls

Brazilian stocks dropped with the Ibovespa pacing the declines among the major stock benchmarks as surveys began showing that presidential candidate Dilma Rousseff has been doing well in the opinion of voters in the middle of the economic stagnation.

The Ibovespa shed 0.8% to 58,198.66 in the closing trade in Sao Paulo. The index is at its lowest since the 18th of August. It’s the sixth consecutive day of decline for the index and is the longest losing streak since February of 2013. The gauge weakened after the publication of a Vox Populi poll that showed that Rousseff has climbed and is now statistically tied with Marina Silva. In other surveys, Silva led. The nation’s currency declined as well, losing 0.2% to match the dollar at 2.2885.

Petroleo Brasileiro was the biggest laggard in the benchmark index as the change of government weakened. Itau Unibanco Holding slipped to a two-week low along with Vale. Petrobas is also down, shedding 2.5%.

Partner at Orama Asset Management, Alva Bandeira, commented to Bloomberg that the past weeks had investors confident that a new government will arise in the administration of opposing presidential candidate, Marina Silva, however the recent poll showed that the bets are back to being flat as the election scenario is seeming to be more and more jumbled.

Across the global market, investors are still wary as more hints that the Federal reserve Bank will be increasing interest rates sooner than expected proliferate the global markets. The next Fed meeting will be on September 16-17.