There is growing investor pessimism that Brazilian President-elect Luiz Inacio Lula da Silva will govern with fiscal discipline as the country’s central bank chief likened a market selloff to a "Liz Truss moment for Brazil." Brazil’s real currency and Bovespa stock index both lost around 4% on Thursday, as Lula’s brief honeymoon with investors soured over his public commitment to prioritize social spending over fiscal rectitude and delays in naming his economic team.
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