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

China tariffs, NAFTA talks and Bitcoin plunge

DAX sinks to 5-month low, German factory orders slips

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.