Shares in Petrobras are spiking 22.44% in Frankfurt trading

Brazilian assets are set for a day of gains following this weekend’s electoral upset.

As expected, incumbent presidential candidate Dilma Rouseff won a majority of votes, 41%, although not enough to avoid a run-off election.

Markets however had been betting on Marina Silva winning second place. In the event it was the more business-friendly candidate Neves who garnered the next biggest following, with 34% of Brazilians voting for his candidacy.

As of 12:36 shares of oil-major Petrobras were spiking 22.44% to €36.35 in Frankfurt trading.

Up until this morning the most widely expected outcome was that supporters of Silva would shift their support towards Rouseff, but a small group of brokers now seems to believe that the opposite might just occur.