Are The Markets Heralding The Post-Crisis Stage?
BNP Paribas | Sep 07, 2016 06:09AM ET
Mired into recession for two years, the Brazilian economy posted the sixth consecutive quarterly decline in GDP in Q2 2016 (-0.6% q/q sa). As for real economy and public finances, lights are still red or, at best, orange. Nonetheless, the markets have definitely turned green since early 2016. Year-to-date, the real appreciated 18% vs. the US dollar, the IBOVESPA stock index increased by 37%, and yields on government domestic bonds and CDS spreads on sovereign Eurobonds shrank by 480 and 240 basis points, respectively. This dichotomy reflects the rebound in investors’ confidence (belief?). Indeed, the markets have endorsed President Dilma Rousseff’s impeachment and have underpinned her successor, ex Vice-President Michel Temer, whose market-friendly reform agenda enjoys very little popular support.
by Sylvain BELLEFONTAINE
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.