Economics
Brazil Real, Stocks Little Changed as Investors Await Measures
- Acting president proposes spending cap to Congress leaders
- Banco do Brasil falls as sovereign fund poised to sell shares
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Brazil’s stocks and the real closed little changed as investors weighed whether acting President Michel Temer will be able to push through proposals to tame the widening budget deficit in Latin America’s largest economy.
The real closed near the lowest level in five weeks and the Ibovespa gained less than 0.1 percent amid speculation that Brazil’s woes will be difficult to overcome. Given the size of the country’s fiscal hole, the policy guidelines and “impressive” rhetoric are a welcome start, but are sure to run into a more difficult political reality in Congress, Neil Shearing, the chief emerging markets economist with Capital Economics, said in a report.