untitled design

Market digests September 7th acts; global prospects drop oil

The collective feeling on Thursday (8), after the September 7 demonstrations, is of a certain relief.

At the event that celebrated the bicentennial of the country’s independence, President Jair Bolsonaro (PL), contrary to expectations, did not bet on excessive radicalization and did not inflame his supporters, in addition to avoiding direct and personalized attacks on the judiciary. Indirect, however, were not spared.

The general reading was of some moderation on the part of the president, although it is clear that there was, indeed, a transformation of the bicentennial into an act of electoral campaign. Because of this, the opposition, including presidential candidates, went to court alleging an electoral crime committed by Bolsonaro, for having used an official event to carry out electoral practices.

It is no secret to anyone that a good part of the Brazilian financial market has a certain preference for President Bolsonaro in the dispute for the Planalto. Even though the re-election candidate has mainly spoken out for converts, the general view is that he has gained traction — not necessarily in the form of votes.

As reinforced by CNN analyst Caio Junqueira, Bolsonarism is a movement that has strength in Brazil, even if it ends up not winning the next elections. The fight in Justice, in the view of the market, is a separate chapter, which should not generate short-term effects. Given this scenario, pragmatism should prevail in the opening of markets this Thursday.

The international market, in turn, is in a recovery mood, as bad news culminated in good news. The slowdown in the pace of growth in the US, China and European countries pushed the price of a barrel of oil below US$ 90.

This is despite the global energy crisis, which causes a perception of absolute uncertainty. Also on Thursday, the European Central Bank (ECB) is expected to raise interest rates in yet another move to contain eurozone inflation. In the United Kingdom, Prime Minister Liz Truss is due to present her government economic plan, which should prioritize the guarantee of energy supply and a drop in British electricity bills.

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

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular