Brazilian stocks plummet on electoral poll, incumbent president leads
September 30, 2014 7:40 am
Brazilian stocks led the declines in global market losses with the Ibovespa plunging as the real fell to its lowest in 13 months after polls showed that incumbent President Dilma Rousseff had more approval than rival candidates.
The Ibovespa shed 4.5% to 54,625.35 at the closing trade in Sao Paulo. It is the index’s biggest slump in 3 years. For the month, the gauge has already lost a total of 10.6% that is the biggest slump for this month versus any other stock market around the world.
Investors are hoping against hope that by the end of election, there will be a new government. A new administration would be a boost in economic growth following the recession. The steady decline of the Ibovespa is directly proportional to the steady incline of President Dilma Rousseff in the polls. Previously, the Ibovespa led gains in comparison with other markets of the world as speculations that Dilma Rousseff will be beaten was clear in the polls. The economy of Brazil have been growing slowly since 1992.
An MDA opinion poll indicated that Dilma will return as president in October’s election with 47.7% while main rival and Environment Minister Marina Silva at 38.7%.
Partner at hedge fund Teorica Investimentos, Rogerio Freitas, commented to Bloomberg that the better the chances of Dilma winning, the worse it gets for the market. Freitas adds that as what it is now, the recent poll is negative news.
The material has been provided by InstaForex Company – www.instaforex.com
Brazilian stocks led the declines in global market losses with the Ibovespa plunging as the real fell to its lowest in 13 months after polls showed that incumbent President Dilma Rousseff had more approval than rival candidates.
The Ibovespa shed 4.5% to 54,625.35 at the closing trade in Sao Paulo. It is the index’s biggest slump in 3 years. For the month, the gauge has already lost a total of 10.6% that is the biggest slump for this month versus any other stock market around the world.
Investors are hoping against hope that by the end of election, there will be a new government. A new administration would be a boost in economic growth following the recession. The steady decline of the Ibovespa is directly proportional to the steady incline of President Dilma Rousseff in the polls. Previously, the Ibovespa led gains in comparison with other markets of the world as speculations that Dilma Rousseff will be beaten was clear in the polls. The economy of Brazil have been growing slowly since 1992.
An MDA opinion poll indicated that Dilma will return as president in October’s election with 47.7% while main rival and Environment Minister Marina Silva at 38.7%.
Partner at hedge fund Teorica Investimentos, Rogerio Freitas, commented to Bloomberg that the better the chances of Dilma winning, the worse it gets for the market. Freitas adds that as what it is now, the recent poll is negative news.
The material has been provided by InstaForex Company – www.instaforex.com
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