Proximity to the elections and the international scenario create a climate of uncertainty

The backdrop for this Friday (30) is one of uncertainty — in Brazil and worldwide.

Two days before the first round of the elections, the excitement in the markets is not only due to the possibility, still uncertain, of having a definition on who will be the next president of the Republic already on Sunday, but also because of the economic policy that each candidate suggests for 2023. .

Luiz Inácio Lula da Silva (PT) and Jair Bolsonaro (PL) have different government plans, in many practically opposite points. Despite this difference, the task is the same: to keep the Brazilian economy anchored in respect for the rules and limits of public governance, with sensible and, above all, realistic purposes.

The framework that governs public sector management, provided for by the Constitution, is the same for both candidates at the forefront of the dispute. The strength that the presidential chair will have will depend on the power not only of the next president, but if he will share that power with the National Congress, which has an important role in defining the rules of the fiscal plan.

Outside, the climate of uncertainty is as imperative as it is at home. The so-called “toxic cocktail” — which brings together a battery of data on high inflation in developed countries, prospects of rising interest rates, recession fears, geopolitical risks and heightened tensions in the Ukraine War — brings a mood of caution as markets are heading to close the month and the quarter with the sharpest drops in a long time.

In Asia, the stock markets mostly closed lower, a scenario that could be repeated in Europe. Eurozone inflation stood at 10% in September, above expectations of 9.7%, putting pressure on the European Central Bank (ECB) to raise interest rates.

In the United States, PCE (personal consumption expenditure) and labor market data are in the Fed’s sights to guide monetary policy.

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

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