Political developments in Brazil and Spain overnight are adding volatility to certain overseas markets, highlighting mounting pressure on failing left-wing regimes. 

In Brazil, right-wing Senator Flávio Bolsonaro's first-round lead over socialist President Luiz Inácio Lula da Silva significantly strengthens his position heading into the Oct. 25 runoff. A Bolsonaro victory would shift Latin America's largest GDP to the right, reinforcing a broader regional once-in-a-generation realignment from unhinged leftist regimes to common-sense right-wing governments.

Brazil's political pendulum is swinging right after years of toxic socialism, and investors are cheering on Monday morning: 

BANKS, FINANCIAL FIRMS

Banco Bradesco: +10%

Itau Unibanco Holding: +11%

NU Holdings: +9.5%

Inter & Co.: +11%

Banco Santander (Brasil): +3.5%

PagSeguro Digital: +14%

StoneCo: +12%

PicS: +6.2%

STEEL, METAL & MINING

Companhia Siderurgica Nacional: +9.5%

Vale: +6.5%

Gerdau S.A.: +7.0%

AERO, OIL & GAS AND OTHER SECTORS

XP Inc.: +15%

Ambev: +8.4%

Embraer: +6.3%

MercadoLibre: +7.0%

Telefonica Brasil: +8.1%

Companhia Energetica de Minas Gerais: +7.0%

Companhia Paranaense de Energia: +5.8%

Petroleo Brasileiro: +7.0%

Ultrapar Participacoes: +7.2%

Cia de Saneamento Basico do Estado de Sao Paulo (SABESP): +9.7%

TIM S.A.: +6.8%

Bolsonaro captured 47% of the vote against Lula's 45.2%, with counting completed, as conservative allies dominated races across the country.

Via Bloomberg: