Regime changes stalk the markets

Regime changes stalk the markets

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Regime changes continue apace across global markets. In Brazil, the markets are fixed on the election struggle underway this autumn.

Rumours the incumbent might lose seem to fuel buying, but anyone taking over will inherit difficult economic problems to resolve. Inflation remains stubbornly high, interest rates are similarly steep to curb price rises, and growth is stuttering. Markets are watching the attempts of the US-led coalition to remove the forces of ISIS from large areas of Iraq and Syria. So far, the level of violence and disruption has been worrying for the region but has not spilled over into higher oil prices and economic damage elsewhere. Meanwhile, in the UK, investors wobbled when the polls narrowed ...

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