ProShares UltraShort MSCI Brazil Capped (BZQ)
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In the latest World Economic Outlook Report, the IMF said "the dangerous divergence in economic prospects across countries remains a major concern". While the IMF focused on the "vaccine divide" between developed and developing nations, there are other divergences at play.
China???s stocks saw one of the heaviest drops ever, energy prices skyrocketed, inflation spiked and the central banks signaled tightening of policies.
Wall Street replicated the week before and ended on a negative note last week too.
Brazilian assets have underperformed since the end of the second quarter, with weakness across all asset classes: FX, credit and rates. In credit, Brazil has widened a bit more than comparable stable BBs in Latin America since June.
Plus, two closures and some interesting changes to existing ETFs.
Last week was mixed for Wall Street. Tax hike fears, rising COVID-19 cases and still-existing rising rate worries led to the volatility.
Wall Street crashed last week with the S&P 500, the Dow Jones, the Nasdaq Composite and the Russell 2000 losing about 2.5%, 1.8%, 4.9% and 2.4%, respectively.
Global markets were charged up last week with the S&P 500, the Dow Jones and the Nasdaq Composite gaining about 1.9%, 0.5% and 3.2% respectively.
Apart from the dramatic health implications, COVID-19 will also scar the Brazilian economy, including through a jump in its already high public-sector debt-to-GDP ratio in 2020. We depict different scenarios for GDP growth-cum-debt encompassing not only the short-term trajectory of the Brazilian economy (2020-22), but also different perspectives related to 2023-30.
Unlike other central banks around the world such as the U.S. Federal Reserve, Brazil's Central Bank has just one responsibility: to keep inflation low.