Brazilian duo eye funding but election pessimism grows

By Oliver West
23 Oct 2014

Equity markets are responding more strongly than bond markets to pessimism about Brazil’s election scheduled for Sunday, say bankers covering the country. However, that may only mean the bond markets have further to fall should incumbent Dilma Rousseff retain power, said one LatAm syndicate banker at a Brazilian bank on Thursday.

Capital Economics’ Neil Shearing said in a report on Thursday that the latest polls suggest that the run-off is still too close to call, “which we suspect favours the incumbent, Dilma Rousseff, over the challenger Aécio Neves”.

“In terms of the markets, it’s clear that a victory for ...

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