Monday, 6 October 2014

Forgotten Brazilian Candidate Re-Emerges in Bullish Sign

Aecio Neves, the Brazilian presidential candidate favored by many investors, was a forgotten man on the campaign trail the past month.
How forgotten? When his economic adviser, Arminio Fraga, the ex-central banker who helped save Brazil from default in 1999, held a press conference in Manhattan on Sept. 4 to promote the candidate’s policies to the international community, only three reporters showed up.
So when Neves scored a second-place finish in the vote yesterday to force a runoff with the incumbent Dilma Rousseff, it was a surprise result that’s likely to boost financial markets after they plunged in recent weeks on expectation of a Rousseff re-election. UBS AG and Allianz Global Investors predict stocks and the currency will post short-term gains on Neves’s move into the second round.