The Brazilian stock market rises moderately after the Bolonarists take control of Congress.
The website Brazilian scholarship increases moderately (+0.20%) after supporters of ex-president Jair Bolsonaro on Sunday stormed Congress, the presidency and the Supreme Court. from the country. After ending the first week of the year down 0.38%, selling held steady early Monday, but then turned to moderate gains.
Investors remain very attentive to events taking place on the international scene. Largest economy in Latin America and watch with concern a situation reminiscent of the storming of the US Capitol.
The market also pays particular attention to the performance of the Bovespabenchmark indicator for the Brazilian stock market, which posted gains of around 0.20% in Monday’s session.
” The USD/BRL parity and the interest rate may suffer from the exit of domestic currency positions and the perception of a higher premium by investors for protect themselves from the deterioration of the perception of Brazil.“, says Eduardo Moutinho, analyst at Ebury. ” It is likely that the inflow of capital from foreign buyers, which has recently entered the Brazilian market, is likely to be cancelled.and investors should wait for the political and fiscal scenario to align,” he says.
The protests resulted in the detention of more than 1,200 people so far. The Supreme Court also ordered the dismantling of the encampments of Bolsonaro supporters within 24 hours.Otherwise, it will take action against the responsible authorities. The Court, likewise, required that the the unblocking of the main highways of the country.crowded throughout the day.
The website the greatest international leaders quickly expressed their fierce opposition to the events and their defense of Brazilian democracy.
The president of the United States, Joe Bidencondemned “the attack on democracy and the peaceful transfer of power in Brazil”. “Brazil’s democratic institutions have our full support and the will of the Brazilian people must not be undermined.”
I condemn the attack on democracy and the peaceful transfer of power in Brazil. The democratic institutions of Brazil have our full support and the will of the Brazilian people must not be questioned. I look forward to continuing to work with @LulaOfficial.
— President Biden (@POTUS) January 8, 2023
The President of the Government, Pedro SanchezThe Spanish government expressed its support for President Lula da Silva and issued “a call for an immediate return to democratic normality”.
All my support to the president @LulaOfficial and the institutions freely and democratically elected by the Brazilian people.
We strongly condemn the assault on the Brazilian Congress and call for an immediate return to democratic normality.
— Pedro Sanchez (@sanchezcastejon) January 8, 2023
British Prime Minister, Rishi Sunakwas also among those who condemned “any attempt to undermine the peaceful transfer of power and the democratic will of the Brazilian people”, and reiterated its “full support” for Lula’s government..