Brazil Market Awaits U.S. Election to Resume Positive Trend
(Bloomberg) -- Brazil currency and stocks await U.S. election results with analysts and traders seeing a positive trend if polls favoring Clinton are confirmed.
- “It looks like Clinton will win, but no one will risk before the result. We already had many surprises with polls, such as those with Brexit and Colombia,” Olavo Souza, trader at Mirae Mirae Asset Wealth Management, says in a phone interview
- Brazil market may react positively if Clinton wins; should BRL strengthen and Senate passes the spending cap bill, BCB may have room to speed the rates cut pace to 50bps
- Inflation numbers released today were positive for rate cut outlook
- Market is pricing 70% odds of a Clinton win; with no surprise, yesterday’s relief move may continue, Luiz Eduardo Portella, partner at Modal Asset Management, says
- There’s is still “some concern” about a Trump win, even though it has became less likely after FBI decision on Clinton’s e-mails
- Trump win could bring more risk for Brazil as uncertainties may harm growth and an eventual BRL drop could be a hurdle for BCB rate cuts, Ricardo Ribeiro, analyst at MCM, says
- Scenario for reforms is still positive despite some newspapers reports on govt struggling with votes, analysts say
- Read More: Brazil Inflation Goal Now Within Reach Top Forecasters Say
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
People Luiz Eduardo Portella (Banco Modal SA)
Modal Asset (Banco Modal SA)
Olavo Souza (Mirae Asset Securities Brazil Exchange Broker Securities Ltd)
Ricardo Mendes Ribeiro (MCM Consultores Associados Ltd)
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