Turim’s Insights

September showed a turnabout on the recovering of markets, mainly due to Nasdaq, the American stock exchange focused in technology companies. In this webinar, our CIO Leonardo Martins Moraes explained that the index had recuperated very strongly in the previous months.

“Due to this, an adjustment is expected. In addition, we had a re-acceleration on the number of Covid cases in Europe and American elections coming up, which makes investors with less liking to risk assets”, he said.

The risk of elections was also mentioned by our economist Henrique Santos, who highlighted the possibility of a contested result.

“This year, there should be a significant increase in votes sent by mail, which creates a logistical problem in terms of counting votes. Therefore, the result may take weeks to be made official. And President Trump has already raised the possibility of contesting it, alleging fraud in those votes”, he says.

In Brazil, specialists remind us, stimuli via cash transfers have resulted in positive surprises in the recovery of activity indicators, but concerns about the country’s fiscal situation, such as the source of funding for Renda Cidadã and abiding to the spending maximum.