Brazilian election result

The Brazilian election results showed a tight outcome and a divided country. However, key actors including some Jair Bolsonaro allies, have praised the process and several key countries, including the US, China and Latin American leaders have already congratulated Luiz Inácio Lula da Silva. We would expect to see markets rally should the results not be contested or in absence of major protests. Looking forward, the next milestones will be the announcement of key appointments, particularly for the Economic Ministry. Congress is divided, which should provide checks and balances to various initiatives, including the budget for 2023 and the discussion of the fiscal rule.

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