EETT News Service reported on the 6th that the first-round results of Brazil's presidential election show former President Bolsonaro's son, Flavio Bolsonaro, unexpectedly leading incumbent President Lula, sending Brazilian assets soaring, with the real surging 5% at one point and the stock market recording its biggest single-day gain in six years.
Citigroup strategists recommend investors increase bullish bets on Brazilian equities and local-currency bonds, noting that Flavio has pledged fiscal austerity, privatization, deregulation, and a reduction in value-added tax, making him a more market-friendly candidate.
Citigroup stated that market pricing suggests a high probability of Flavio winning the final round of voting on October 25, and recommends buying Brazilian equities and government bonds maturing in 2031, known as NTN-Fs. (rc)
Citigroup strategists recommend investors increase bullish bets on Brazilian equities and local-currency bonds, noting that Flavio has pledged fiscal austerity, privatization, deregulation, and a reduction in value-added tax, making him a more market-friendly candidate.
Citigroup stated that market pricing suggests a high probability of Flavio winning the final round of voting on October 25, and recommends buying Brazilian equities and government bonds maturing in 2031, known as NTN-Fs. (rc)
