Brazil, a star member of the BRICS, has plunged into a political crisis that has been going for years since President Dilma Rousseff, mentored by her now jailed predecessor Lula, was ousted from office. In August 2016 as Michel Temer just replaced her, Cyceon wrote that the impeachment did not mean the end of the deep political divide in Latin America’s largest economy, quite the contrary actually.
A bit more than two years later, the presidential election is experiencing a new cycle of violence with far-right candidate Jair Bolsonaro having been severely stabbed as he was campaigning in the streets. Despite that, Brazil’s stock market remains twice bigger at 76,000 points compared with the January 2016 bottom at 38,000 points.
In the meantime the US Dollar (USD) just increased by 2.5% (from 3.96 to 4.06) against the Brazil Real (BRL), showing the stability of Brazil’s stock market which managed to remain somehow immune to domestic tensions till now. It’s doing better than its Emerging Markets (EM) counterparts as well.