Rally with Flávio, reaction to Lula: what the buyside expects for Monday
The buyside still sees room for a rally in Brazilian assets on Monday if Flávio Bolsonaro wins the election, a survey by Citi shows. But the market reaction should be more intense – and to the negative side – if Lula is elected, according to investors heard by the bank.
A survey by Citi found that investors expect Brazilian assets to rally if Flávio Bolsonaro wins the election, but react negatively if Lula is elected. If Flávio Bolsonaro wins, 49% of investors expect the Ibovespa to rise over 5% on Monday, while 78% expect the real to appreciate between 2% and 5%. In contrast, if Lula wins, 80% of investors expect the Ibovespa to fall over 5%, and 63% expect the real to depreciate over 5%. The survey collected opinions from 73 fund managers.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
