Negotiations of public securities through the Direct Treasury were suspended around 4:15 pm this Tuesday (13) after president-elect Luiz Inácio Lula da Silva announced the name of economist Aloizio Mercadante for the presidency of the BNDES.
The expedient is adopted when the market stresses a lot and interest rates are very volatile. The objective is to prevent the investor from closing operations at a price that is quickly outdated.
On these occasions, it is possible to negotiate only pre-fixed securities at the Selic rate.
Mercadante’s name is viewed with great concern by the market. The economist’s appointment must also disobey the state-owned law, which establishes a 36-month quarantine for those who participated in political campaigns.
falling stock market
The Ibovespa reversed the upward trend this Tuesday (13th) and started to fall after the confirmation of the name of Aloízio Mercadante for the presidency of the BNDES in the government of Luiz Inácio Lula da Silva.
News citing former minister Mercadante as the potential head of the state-owned company in the next government had already weighed on local assets the day before, as market agents see the appointment as a sign of a more developmental economic policy by the elected government, with possible expansion of the public spending to drive economic growth.
Source: CNN Brasil
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