Last Monday (24), the Brazilian stock market took off strongly from the positive wave that took hold of international markets, which, even with the results of China’s Gross Domestic Product (GDP) and concerns about Xi’s third term Jinping, closed higher.
Here, however, Monday was nicknamed “Bob Jeff Day”, or Roberto Jefferson Day. At 116,000 points, the Brazilian stock market had the biggest daily drop since November 2021, at 3%, while the dollar reached R$ 5.30 and the shares of state-owned companies also suffered a hit.
In short, there was a reversal of last week’s gains, then driven mainly by investor optimism about a possible turnaround by Jair Bolsonaro (PL) against Luiz Inácio Lula da Silva (PT) in the presidential race.
With the elections approaching, the week holds intense volatility for Brazilian markets, regardless of how the band plays abroad. This more defensive posture of investors is even in the face of a possible escalation of violence after the choice of the new president, creating a sense of a “third round”.
Everything involving the episode of the arrest of Roberto Jefferson, who assumed he fired 50 rifle shots at Federal Police agents, was disastrous, from the ex-deputy’s resistance to the use of military weapons against the police forces, leading to the question: which the force that Jefferson’s fanatical speech, delivered in recent months, has throughout Brazil?
The behavior of markets and voters will be closely monitored throughout this week, including on Tuesday’s episode of CNN Money.
Presented by Thais Herédia and Priscila Yazbek, CNN Money presents a balance of news issues that influence markets, finances and the direction of society and power dynamics in Brazil and worldwide.
*Posted by Tamara Nassif
Source: CNN Brasil
