Effect of COVID-19 confirmed cases and death on Brazilian stock.
The effect of confirmed cases and death alone explain only part of the stock index price change. For instance, it reflects mostly new epidemic events (first confirmed case, first community transmission, first death). Other than that, we should pay attention to political decisions happening as events develop.
Most political decisions are made around social distancing and isolation, which contributes negatively to economic predictions. Some speeches, such as Brazilian president's, contribute to limited economic optimism, but this should be seen with caution, as ethical and humanitarian issues could potentially foster an impeachment, which could be economically devastating.
Most political decisions are made around social distancing and isolation, which contributes negatively to economic predictions. Some speeches, such as Brazilian president's, contribute to limited economic optimism, but this should be seen with caution, as ethical and humanitarian issues could potentially foster an impeachment, which could be economically devastating.