MORGAN STANLEY WARNS OF BRAZIL MARKET SELLOFF Morgan Stanley forecasts a 20%–30% drop in Brazilian equities following Lula's election victo…
MORGAN STANLEY WARNS OF BRAZIL MARKET SELLOFF
Morgan Stanley forecasts a 20%–30% drop in Brazilian equities following Lula's election victory.
The bank sees USD/BRL reaching 5.60, potentially 6.00 if fiscal concerns worsen, alongside 300–400 bps of pressure on interbank rates.
The key takeaway: Rising fiscal risks threaten Brazil's currency, bonds and equities.
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