Is Brazil the next crisis in EM?

An upcoming presidential election in Latin America’s biggest economy has the spill-over potential to dramatically impact emerging markets, strategists told CNBC this week.

Brazil is set to hold a two-round ballot next month, with the vote widely expected to be the most unpredictable since the country’s return to democracy three decades ago. Political corruption investigations have dominated the headlines ahead of the election, as voters become increasingly alienated with several of their representatives.

Meanwhile, emerging market currencies in general have suffered in recent weeks, as escalating trade tensions threaten to curb global economic growth. The MSCI emerging markets stock index is down nearly 12 percent since the start of the year.

CNBC

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam