Tuesday, September 30, 2014

Brazil: Stocks Plummet as Voters Prepare to Cast Their Ballots

According to The Latin American Tribune, the Brazilian stock market has plummeted as the presidential election campaign entered its final stretch.

The market took a hit Monday (September 29) against the backdrop of the latest surveys indicating the re-election of President Dilma Rousseff in the forthcoming polls scheduled for Sunday.

While the chief candidates began to intensify their campaigns in strategic regions, the São Paulo stock market saw its biggest fall in three years and the Brazilian real at its weakest since August 2013.

The Ibovespa index fell by 4.52% and the Brazilian real weakened by 1.65% against the US dollar in what is believed to be a reaction to the latest poll survey results.

COMMENT: According to the latest MDA Institute survey, Rousseff, from the Workers Party, will lead the first round of the elections with 40.4% of the votes, followed by Marina Silva of the Brazilian Socialist Party with 25.2%.

In the second round of polling, which is now almost a surety and is scheduled for October 26, Rousseff is expected to win with 47.7% of the votes against the 38.7% for Silva, the candidate most favored by the market.

On Monday, Rousseff focused her campaign in the state of Minas Gerais, the political fortress of rival candidate Aecio Neves, and São Paulo, where Silva is seen as the favorite.

Meanwhile, Silva campaigned in the northeastern state of Pernambuco.

Neves, from the Brazilian Social Democracy Party and who is in third place in the latest surveys, campaigned in the city of São Bernardo do Campo, near São Paulo.

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