SAO PAULO, Sept 11 (Reuters) - Brazilian equities and currencies both slumped on Tuesday after an opinion poll on the presidential election showed leftist candidates gaining ground while market-friendly centrists did not.
For months, traders had been betting that a market-friendly candidate would emerge from the pack to win in October. A Datafolha opinion poll released on Monday night underlined that the window for such a development is rapidly closing.
Leftist candidates such as Ciro Gomes and Fernando Haddad, the likely stand-in for former President Luiz Inacio Lula da Silva, made progress, the poll showed. Right-wing populist Jair Bolsonaro extended his lead marginally after surviving a near fatal stabbing at a campaign event.
Market-friendly centrists such as former Sao Paulo Governor Geraldo Alckmin continued to lag, meaning a run-off will likely occur between Bolsonaro and a leftist candidate following the Oct. 7 election.
Bolsonaro is likely to make it to a second round run-off, though it is likely he will lose in a head-to-head match-up, said Juliano Ferreira, a strategist at brokerage BGC Liquidez. Ferreira said the momentum of Gomes and Haddad "is bringing discomfort" to the market.
The real currency was off 1.56 percent in afternoon trade after earlier dropping more than 2 percent, while the benchmark Bovespa equities index fell some 2.32 percent, its biggest intraday loss since August.
Preferred and common shares in state-run utility Centrais Eletricas Brasileiras SA, known as Eletrobras, both fell over 6 percent on an increasing likelihood that a privatization auction for one of its units in Amazonas state will be delayed.
Argentine equities and the peso currency were also hit on Tuesday, as ongoing global trade tensions, uncertainty about that nation's 2019 fiscal budget and ongoing talks between the government and the International Monetary Fund pushed traders to roll back risky positions. On Tuesday, ratings agency Fitch also warned that risks were mounting for the country.
The peso was off 1.5 percent in afternoon trade, while the benchmark Merval equities index fell 2.08 percent.
Latin American stock indexes and currencies at 1622 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1011.25 -1.15 -12.71 MSCI LatAm 2435.08 -0.76 -13.9 Brazil Bovespa 74662.60 -2.32 -2.28 Mexico IPC 48650.00 -0.41 -1.43 Argentina MerVal 28843.86 -2.08 -4.06 Colombia IGBC 11931.40 0.09 4.93 Venezuela IBC 337964.41 -0.43 26655.89 Currencies daily % YTD % change change Latest Brazil real 4.1574 -1.56 -20.30 Mexico peso 19.2110 -0.28 Chile peso 696.3 -0.04 -11.73 Colombia peso 3078.17 0.28 -3.12 Peru sol 3.336 -0.12 -2.97 Argentina peso 37.9500 -1.50 -50.99 (interbank) Argentina peso 37.5 -0.67 -48.72 (parallel) (Reporting by Gram Slattery and Paula Arend Laier; Additional reporting by Jorge Otaola in Buenos Aires; editing by Grant McCool)