Daswani Sees Brazil Opening Selloff as Buying Opportunity After Lula Win

Gavekal Research analyst Rohan Daswani said investors should view a potential drop in Brazilian shares as a buying opportunity after Lula’s unexpected victory over Bolsonaro, while warning that the market could see sharp selling at the open. Daswani said traders had positioned for Bolsonaro to win and for fiscal discipline to improve. He said those positions could unwind after the result, even though he still sees a longer-term case for Brazil. He pointed to unusually high nominal and real interest rates, Brazil’s commodity exposure and its growing role in critical-mineral supply chains.

Source: TokenPost