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Montevideo, November 13th 2018 - 07:24 UTC

Brazilian stocks edge higher convinced Lula will be barred from running in election

Tuesday, January 9th 2018 - 10:01 UTC
Full article 10 comments
The rally in Brazilian stocks has been supported by investor betting on a market-friendly winner in this year's presidential elections The rally in Brazilian stocks has been supported by investor betting on a market-friendly winner in this year's presidential elections
Signs that an economic recovery is picking up steam have also supported demand for Brazilian stocks, which should see earnings growth regain a solid footing. Signs that an economic recovery is picking up steam have also supported demand for Brazilian stocks, which should see earnings growth regain a solid footing.

Brazilian stocks edged higher to mark a record close on Monday, underpinned by optimism over the nation's fiscal outlook as well as a strong flow of international investment. The benchmark Bovespa stock index continued its climb following a seven-day string of gains.

 The rally in Brazilian stocks has been supported by investor betting on a market-friendly winner in this year's presidential elections, who would advance President Michel Temer's austerity platform.

Former President Lula da Silva, who has railed against Temer's policies, is leading opinion polls, but he could be barred from running if a conviction for corruption is upheld by a higher court on Jan. 24.

Signs that an economic recovery is picking up steam have also supported demand for Brazilian stocks, which should see earnings growth as Latin America's largest economy regain a solid footing.

“Inflows from foreign investors remain substantial and the pipeline looks strong,” analysts at the Magliano brokerage wrote in a report.

However traders in emerging markets have been closely following U.S. economic indicators and remarks by policymakers for hints over the pace of interest rate hikes in the United States, particularly after a mixed jobs report last week. Higher U.S. rates could dampen demand for emerging markets, which offer higher yields.

Categories: Economy, Politics, Brazil.

Top Comments

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  • Jack Bauer

    @EM
    Let me help you understand : Lula remains popular amongst the lower class, to which unfortunately, all his corruption flies way above their heads. The bolsa familia, despite being not much better than a few crumbs, is concentrated in the regions where there is a lot of poverty, which is where Lula came from...his popularity is still 'relatively' high there (but less than before) due to the fact they still identify with what he used to be, 25 years ago....they are too stupid to realize he moved on and left them behind. If he hadn't, why are they still in the sh*t after 14 years of PT rule ?

    The corruption charges will probably stick - after all, from a technical point of view, the proof cannot be ignored - but if the TRF-4 decides to give in to political pressure to not convict him, by not confirming the sentence handed down by Moro, 3 to 0, he'll get off....which is not entirely impossible, given the pressure from parts of Congress which are all just as corrupt as Lula, and worried about their own arses....I'm sure you believe Lula was convicted by Moro for purely political reasons, but will have no qualms in comemorating his getting off due to purely political reasons as well...so IMO, it's a possibility that his guilt can be swept under the carpet...

    If the PT took 14 years to show their true colours, and the masses don't think they got screwed in 2014, let them vote the 9-fingered toad back in, if he is not declared inelegible.

    And just for your info Reekie, IF you lived here - which you don't - you'd be able to tell the difference in 1) supporting Temer for the sake of Brazil pulling itself out of the hole (dug by the PT) and 2) the continuation of the destructive populism as promoted by Lula.
    Reekie, since you obviously couldn't make it in Argentina, perhaps you could come to Brazil if Lula is elected, to be one of his top advisors...your expertise in Brazilian politics is too valuable to be wasted in Canada.

    Jan 14th, 2018 - 08:11 pm +1
  • :o))

    SOUNDS like a “Good” News!

    BUT the reporter may not be VERY accurate:

    The TRUTH behind the news: REF:
    https://i1.wp.com/www.humorpolitico.com.br/wp-content/uploads/2018/01/Eleitor-Palhaco.jpg?resize=580%2C394&ssl=1

    Jan 09th, 2018 - 10:27 am 0
  • Jack Bauer

    Best thing for Brazil : Lula behind bars....just the prospect of the toad going to prison - which probably wont happen, even if he is condemned (but cannot run for elective post) - is making the economy and investor confidence improve.

    Jan 09th, 2018 - 08:33 pm 0
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