How Will Brazilian Real, Markets React if Bolsonaro Wins?

TALKING POINTS – BRAZILIAN REAL, ELECTION, EMERGING MARKETS

  • Polarizing election is causing significant volatility in the Brazilian Real
  • Election likely to boil down to Fernando Haddad and Jair Bolsonaro
  • Bolsonaro win could cheer investors but also portend longterm risks

See our FX, commodities and stocks forecasts to learn what will drive financial markets in the fourth quarter!

BRAZIL’S POLARIZING ELECTION

Voters are due for the first round of Brazil’s most turbulent election in decades on October 7th. The unprecedented polarization stems from the nation-wide corruption investigation known as Operation Car Wash. It has revealed corruption at the highest levels of government, enraging voters driving disillusionment with the political system.

The tumult has caused significant volatility in the Brazilian Real (BRL) and the local stock market as investors gauge the economic and social cohesion of the country. The likely final candidates will be right-wing populist Jair Bolsonaro of the Social Liberal Party (PSL), and Fernando Haddad of the Worker’s Party (PT).

BRL and Brazilian Stock Market Vulnerable to Political Polarization

How Will Brazilian<p>Article source: <a target=https://www.dailyfx.com/forex/fundamental/article/special_report/2018/10/03/How-Will-Brazilian-Real-Markets-React-if-Bolsonaro-Wins.html