Brazil lower house speaker Rodrigo Maia argued that pension reform was essential for cutting down Brazil’s budget deficit and lawmakers should at the very least address the minimum retirement age and changes to benefits of public servants, according to Reuters.
“The market is working with the assumption of a very limited reform,” analysts at Citibank said.
On the upside, Brazil is pushing through reforms in its energy sector and strengthening commodities prices are also bolstering the resource-rich nation.
“The stock market rose supported by commodities, with Vale and Petrobras on the rise. This week’s agenda is still a bit weak,” Magliano Corretora’s analyst Pedro Galdi told Business Insider, adding that investors are still waiting for the release of quarterly corporate results expected for the next few days.
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