Brazil: Bolsonaro wave reshapes electoral map

  • Following Sunday’s ballot, far-right frontrunner Jair Bolsonaro will have the upper hand against leftist Fernando Haddad (PT) in a runoff round
  • Bolsonaro’s once-tiny PSL party also saw big advances in the Congress, aided by a surge in anti-PT sentiment
  • But a highly fragmented Congress after historic legislative election results will make passing structural reforms challenging
  • Key losses for the PT will likely force Haddad to the centre, but he still faces an uphill battle, boosting investor sentiment

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