According to Rabobank analysts, Brazil’s local assets have taken cue from (temporarily) better global market conditions for EM/risky assets – amid hopes for a trade deal between U.S. and China.
Key Quotes
“The beginning of a more direct dialogue between President Bolsonaro and leaders of key centrist (or centre-right) parties is a good starting point to speed up the negotiations with parliament regarding the pension reform.”
“On Tuesday (Apr 09, 2019) markets will pay attention to a hearing at the Lower House’s Constitution and Justice commission (CCJ, in Portuguese acronym), where the rapporteur – MP Marcelo Freitas (PSL-MG) – will present his views in a report.”
“For the coming week, growth and inflation take centre stage. Activity releases cap the information set for February, probably confirming a sluggish 19Q1. Inflation numbers are expected to show temporary CPI pressures in non-core (e.g. food, transportation) last month.”
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