The Brazil risk rose 5.6% this afternoon with investors worried about the repercussions of the ceiling-breaking PEC and with the speech of the president-elect Luiz Inácio Lula da Silva. During the morning, the indicator rose 8%.
Brazil risk is measured through CDS (Credit Default Swaps), papers that protect investors from a possible default on the Brazilian public debt.
A draft of the ceiling-breaking PEC was presented by the elected vice-president Geraldo Alckmin to Congress, proposing an extra expense outside the fiscal rules of up to R$198 million (US$36.9 million)
In Egypt, Lula da Silva said earlier that he would not sacrifice social spending for fiscal responsibility, and added. “The stock market will fall, the dollar will rise, be patient,” he said.
With information from CNN/Raquel Landimda