“The market is already making an L,” one columnist wrote.
2 min readFabio Alves, economic commentator for the state of São Paulo, highlights the euphoria of the financial market with the new government
247 – “Domestic investors – and not just foreign ones – have returned to fall in love with Lula’s government after a series of important measures advance on the economic agenda, highlighting Brazil among emerging countries, in the midst of a global environment of risk appetite. The result is an impressive stock exchange recovery. , the exchange rate and the interest rate futures market.At the end of the first half, the dollar witnessed the largest decline in seven years, as it fell below 4.80 Brazilian reals, and Ibovespa recorded the highest increase in this period in four years by about 120 thousand points. Writes journalist Fabio Alvescolumnist for the newspaper Estado de S. Paulo.
It also highlights that “optimism with Lula’s government is outpacing financial asset prices” and notes that “inflationary expectations have fallen sharply in recent weeks, at the same time that expectations for gross domestic product (GDP) growth this year have “jumped.” Recalls Alves That most analysts expect the Silik rate to decline from 13.75% to 12% by the end of the year, the author points out that the increase in confidence attracts investment and stimulates consumption.
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