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Local Assets Under Pressure At Open

BRAZIL
  • IBOVESPA FUTURES FALL 1.1% IN SAO PAULO (BBG)
  • BRAZILIAN REAL FALLS 1.1% ON OPEN (BBG)
  • PETROBRAS HAS RIOTERS NEAR REFINERIES; NO DISRUPTIONS: UNION (BBG)
  • Local markets are opening with a negative bias on Monday, following the weekends social unrest. As a reminder, supporters of ousted President Bolsonaro breached security at the Presidential Palace, Congress as well as the Supreme Court in protest against Lula’s leadership. The sites were reportedly ‘ransacked’ before security forces were able to regain control, with hundreds of arrests proceeding through the night.
  • The government have declared a state of emergency until end-January, meaning military police take the lead on security functions across Brasilia. While market participants will monitor the potential for escalation of the social unrest, negative sentiment could be short-lived as the area seems to have been pacified.

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