Traders in India celebrating Nifty bounce this week but real celebration is happening in Brazil.
The Brazil stock market has rallied 13.4% this week. Add 7% currency appreciation and that makes a 20% rally in a week.
Here's Brazil BOVESPA index daily chart
This is how Brazil ETF Chart looks like
Why has Brazil market rallied like this?
No idea. It looks like a Bear market rally. The Brazilian economy contracted by 3.8% in 2015, the deepest plunge in 25 years and still shows no sign of the turnaround. Another way to look at the rally:
So turns out good news is good news (except for Brazil where bad news = good news). Happy Friday all!
— Tomas Hirst (@tomashirstecon) March 4, 2016
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers