Brazil's Market Is Having An Incredible Day

Brazil handed Wall Street a pleasant surprise Sunday night, when the country's first-round Presidential runoff resulted in victory for the incumbent, the socialist party's Dilma Rousseff, and once long-shot center-right candidate Aecio Neves.

The real is surging against the dollar and its stock market, the Bovespa, is up 8%.

The country's exchange traded fund - a security that trades a basket of Brazil's stocks and the country's currency - is up 10% in premarket trading.

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It's all because of center-right candidate Aecio Neves - this is why Wall Street loves him.

He's the center right market friendly candidate who, according to his platform, will tighten Brazil's belt.

Right now the Brazilian economy is going through an ugly reversal. Once the darling of emerging markets under former President Luis Inacio Lula da Silva's administration, its stock market has fallen 22% since current President Dilma Rousseff took power in 2011.

Inflation is high and climbing, corporate margins are thin, and tough reforms are necessary.