Analysis: Investors on tenterhooks ahead of Mexico, Brazil elections

APRIL 10, 2018 / 1:52 PM / UPDATED 7 HOURS AGO
 Claire Milhench, Rodrigo Campos

LONDON/NEW YORK (Reuters) - Mexican and Brazilian voters fed up with politics as usual could whipsaw investors this year, with a leftist consolidating his favourite status in Mexico’s presidential race while Brazil’s front-runner now sits in jail, leaving its October election wide open.

Corruption scandals in both countries have led millions of voters to abandon traditional parties in favour of more populist candidates. Bond markets are tightly priced after strong inflows, making them vulnerable to upsets.

Mexico and Brazil, Latin America’s largest economies, have benefited from global economic growth and investor appetite for riskier, higher-yielding assets over the last two years.

But some Mexican assets, including stocks, have underperformed their Brazilian counterparts despite Brazil’s long-running recession and ongoing political turmoil.

More:
https://in.reuters.com/article/emerging-latam-investment-analysis/analysis-investors-on-tenterhooks-ahead-of-mexico-brazil-elections-idINKBN1HH31R?rpc=401&


Dear investors, the lives of the people of Mexico and Brazil are totally valuable, while your profits are NOT.