MercoPress, en Español

Montevideo, March 26th 2019 - 04:20 UTC

Markets confident of Bolsonaro victory: stocks up 2% and Real logs sixth straight sessions' win

Saturday, October 27th 2018 - 09:50 UTC
Full article 5 comments
The Real logged weekly gains for a sixth straight session, its longest weekly winning streak since early last year The Real logged weekly gains for a sixth straight session, its longest weekly winning streak since early last year

Brazilian stocks index, Bovespa, rose nearly 2% on Friday ahead of this weekend's presidential election, whole Brazil's Real further consolidated. The MSCI's index of emerging market stocks in the region gained 1.24%. Although, the region's markets fared better than emerging markets elsewhere, they were on track to end a five-week winning streak.

In Brazil's presidential run-off on Sunday, market-preferred presidential candidate Jair Bolsonaro is expected to defeat leftist rival Fernando Haddad.

The Real logged weekly gains for a sixth straight session, its longest weekly winning streak since early last year, in a rally underpinned by hopes of much-needed economic reforms promised by the Bolsonaro.

“Bolsonaro's victory is largely priced in, so the Real's gains on Monday are likely to be limited. Focus will now probably rest on Bolsonaro's appointments and the political course he is going to take, mainly as regards reforms,” analysts at Commerzbank said in a note.

“We see the risk that the relief following the run-off will soon be followed by disillusionment. It would seem that the financial markets are very optimistic regarding the new government's willingness to implement reforms.”

Categories: Economy, Politics, Brazil.

Top Comments

Disclaimer & comment rules
  • :o))

    Will the trends continue when the “Honeymoon is OVER”?
    http://4.bp.blogspot.com/-KYy_ouysypg/USbEhWhs1aI/AAAAAAAAS6I/Gzmv7Bin5no/s1600/humorcaf%C3%A9damanh%C3%A3.jpg

    Oct 27th, 2018 - 09:40 am 0
  • Jack Bauer

    @:o))
    Most marriages start with a honeymoon....which is no guarantee it'll last...but what would you prefer ? the guarantee of continuation of 'lulopetismo', with puppet Haddad, and Lula a free man, to start the chaos all over again ?
    I understand your skepticism after 14 (+2) years of shit, but I think it's high-time you started to think a bit less pessimistically....

    Oct 30th, 2018 - 07:58 pm 0
  • :o))

    @JB

    I'm I am dying to be an optimist - believe it or not!

    If one thinks that politicians are spending millions of US$ and fighting bitterly to grab power - for years - because they are patriots; think again!

    If one yearns to be a politician; it's to steal public money.

    At the end of each election result; the people jump with joy. Those who are bursting crackers today, they did exactly the same - election after election - to cheer Sarne, FHC, Collor, Maluf, Garotinho, Lula, just to name a few [out of too many] other crooks!

    In any case; what really matters the most;- the Bare Minimum - is:
    : Lowest possible [much less than 2-digit] unemployment
    : USD = steadily below R$ 3

    Oct 31st, 2018 - 11:25 am 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!