WEEKLY REPORT Brazil’s political landscape intensifies as global geopolitical uncertainty persists – 24/07
✅ With the economic calendar largely empty, political developments took center stage, as election polls and party conventions reinforced that the race between Lula and Flávio Bolsonaro remains wide open. The lack of a vice-presidential nominee for the PL candidate and rising trade tensions with the United States, following the increase in the effective tariff on Brazilian products to 37.5%, have added to uncertainty and increased the sensitivity of domestic assets to political developments.
✅ Tensions between the United States and Iran remained at the center of investors’ attention, pushing Brent crude back toward the US$100 per barrel mark and increasing inflationary risks for global monetary policy. In Europe, the ECB kept its policy rate unchanged at 2.25% and reiterated its cautious, data-dependent stance amid uncertainty over the duration of the conflict and its implications for energy prices, inflation, and economic activity.
