What's Driving the Eerie Calm in Brazil's Markets?
What's Driving the Eerie Calm in Brazil's Markets?
There’s nothing inevitable about Brazil’s recovery – but today’s news shows why investors are willing to give the country the benefit of the doubt.
Just two weeks ago, corruption allegations involving Brazil’s President Michel Temer tipped the economy into turbulence: the stock market plummeted, the Brazilian real fell sharply, and headlines of the country descending into political and financial panic were everywhere. Again.
By June 1, however, the economy had found an eerie calm. The Bovespa, Brazil's stock market, has slowly been regaining those sharp losses. The real is around BRL3.25 – nearer it’s pre-collapse valuation than its panic-driven lows. The recent stability also enabled Wednesday’s decision by the Brazilian...
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