For a few weeks now, the Brazilian stock market has detached itself from the international markets: while the crisis abroad brings down indices and currencies, the movement here was the opposite, with the strengthening of the real against the dollar and positive trading sessions of the Ibovespa.
Even the last week after the second round was seen as a true honeymoon regarding the election of Luiz Inácio Lula da Silva (PT), although Faria Lima has made clear its predilection for the defeated opponent Jair Bolsonaro (PT).
Now, however, the scenario is different. The signals that guide the decisions of investment managers are emerging and it is very difficult to evade them. Coordinating the transition of governments is messy and mostly fuzzy, with too many people speaking, too many different spokespersons, and multiple solutions on the table for dealing with the 2023 Budget — none of them suggested with enough conviction to guarantee a certain stability. in the inter-government period.
Criticism falls on how President-elect Lula’s transition team does not seem to have anything decided, although the situation and the need to expand the Budget have been known for months. Furthermore, the political pressure to put Fernando Haddad (PT) at the head of the Ministry of Economy is not at all pleasing to the market, which was sweetened by the possibility of Henrique Meirelles pointing the way to Lula about choosing a manager profile that matches the country needs.
The stock market stress seen last Monday is an example of how the market is reacting to the delay in indicating how the Lula government’s economic policy will take place. At the same time, foreign investors are showing themselves — and proving themselves — willing to come to Brazil, a move that is very displeasing to local agents.
In this Tuesday’s episode (8), CNN Money discusses the political pressures on the economy and what the return of the Stock Exchange to the international pattern of high volatility may indicate for the country’s future.
Presented by Thais Herédia and Priscila Yazbek, the CNN Money presents a balance of news issues that influence markets, finances and the direction of society and the dynamics of power in Brazil and in the world.
*Posted by Tamara Nassif
Source: CNN Brasil
