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.
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