Market fears polarization after annulment of Lula’s convictions

The annulment of the convictions of former President Lula within the scope of Operation Car Wash, putting him back in the political game, has soured, once and for all, the mood in the market. On an already negative day for Brazilian assets, the decision by Justice Edson Fachin, of the Federal Supreme Court (STF), took investors by surprise and aggravated the search for protection against the risk of a new scenario of political polarization and additional doses of populist measures by the Bolsonaro administration. Benchmark stock index Ibovespa fell 3.98%.

Source: Valor International