Brazil Impeachment Rally Loses Steam as Economic Reality Sets In

  • Risk reversal on currency shows traders betting on declines
  • Gap between Ibovespa and forecasts is narrowest on record

Brazilian Stocks Rally More Than 30% Since January Low

The rally that made Brazilian assets the world’s best performers in 2016 is losing momentum as investors’ euphoria over prospects for change in government gives way to pessimism about how hard it will be to pull the country out of an economic malaise no matter who is in power.

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