Why Brazilian Equities Continued to Surge in October
BRIC equities mostly rose in October
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Brazilian equities surged ahead, with the Ibovespa positing double-digit gains over the previous month due to strong earnings reports. A strong real was also responsible for the stellar showing by Brazilian equities (EWZ) (ILF). Another major reason for the rise was the victory of parties aligned with President Michel Temer in mayoral elections last month. This victory strengthens his government’s position to push through economic reforms necessary for Brazil’s economy.
Though China’s Shanghai Composite gained in October, worries about the result of the US presidential election and asset bubbles in the domestic economy reduced the gains in Chinese equities (ASHR) (MCHI). President Xi Jinping informed the Politburo on controlling asset bubbles. Meanwhile, a decline in crude oil prices was one reason why Russian equities fell last month.
- Brazil, Russia, India, and China ↩