{"id":99560,"date":"2026-08-14T11:57:34","date_gmt":"2026-08-14T14:57:34","guid":{"rendered":"https:\/\/murray.adv.br\/?p=99560"},"modified":"2026-08-14T11:57:34","modified_gmt":"2026-08-14T14:57:34","slug":"foreign-investors-accelerate-exit-from-stocks-fx-ahead-of-election","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/foreign-investors-accelerate-exit-from-stocks-fx-ahead-of-election\/","title":{"rendered":"Foreign investors accelerate exit from stocks, FX ahead of election"},"content":{"rendered":"<section class=\"content--header\">\n<div class=\"row content-head non-featured \">\n<div class=\"title\">\n<h6 class=\"content-head__title\" style=\"text-align: center\"><em><strong>Ibovespa and real move away from the year&#8217;s best level as election approaches and President Lula is poised to win<\/strong><\/em><\/h6>\n<\/div>\n<\/div>\n<div class=\"content__signa-share\">\n<div class=\"content__signature\">\n<div class=\"content-publication-data\">\n<div class=\"content-publication-data__text\">\n<div class=\"content-publication-data__from\"><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p class=\"content-publication-data__updated\"><time datetime=\"2026-08-14T07:24:59.796-03:00\">08\/14\/2026 <\/time><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"content-media__image aligncenter\" src=\"https:\/\/s2-valorinternational.glbimg.com\/Gw_G7VohV_iJnvlgxN74pSQ-fiA=\/0x0:1153x845\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/i\/g\/Jsy9ahRFa8mJLT8MvAQQ\/gustavo-20medeiros.jpg\" alt=\"Gustavo Medeiros \u2014 Foto: Reprodu\u00e7\u00e3o\/Youtube\" width=\"502\" height=\"368\" \/><\/section>\n<div id=\"mc-article-body\" class=\"mc-article-body ready cropped\">\n<article>\n<div class=\"no-paywall\">\n<div class=\"row medium-uncollapsed content-media content-photo\" data-block-type=\"backstage-photo\" data-block-id=\"0\">\n<div class=\"mc-column content-media__container\" data-image-display=\"normal\">\n<div class=\"content-media-container\" style=\"text-align: center\">\n<figure class=\"content-media__figure\"><figcaption class=\"content-media__description\"><em>Gustavo Medeiros \u2014 Photo: Reprodu\u00e7\u00e3o\/Youtube<\/em><\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"mc-column mc-side-item__container\" data-block-type=\"ads\" data-block-id=\"1\"><\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"49\" data-block-id=\"2\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">The fast-approaching election period has heightened caution toward Brazilian markets among foreign investors, who have been making sizable withdrawals from the country. Data from B3 show that in Tuesday\u2019s session (August 11), nonresident investors withdrew R$4.7 billion from the stock market, the largest single-day outflow since April 22, 2021.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"59\" data-block-id=\"4\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">In August alone, foreign investors have already accumulated net withdrawals of R$11.9 billion from the stock market. This year, the balance of foreign funds in the local stock market peaked in April, when it showed an inflow of R$56.5 billion. Since then, outflows have totaled more than R$32 billion, reducing the accumulated positive balance in 2026 to R$24.4 billion.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"50\" data-block-id=\"5\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">At least so far, the deterioration in sentiment has shown no signs of exhaustion. Thursday (13), once again, the Ibovespa and the real ended the session lower, underperforming other comparable markets. At the close, Brazil\u2019s benchmark stock index fell 0.23% to 167,101 points, while the dollar rose 0.25% to R$5.1925.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"44\" data-block-id=\"6\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">In the face of the recent aversion to domestic assets, the Ibovespa is now up 3.71% this year, well below the 23.3% gain recorded through mid-April. The spot dollar is now down 5.40% against the real but had fallen by nearly 11% in May.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles\" data-block-type=\"raw\" data-block-weight=\"75\" data-block-id=\"7\">\n<p class=\"content-text__container\">\n<blockquote class=\"content-blockquote theme-border-color-primary-before\"><p>\u201cThis is a permanent exit [by foreign investors], or at least until the election is over, is the following day. Stocks and the dollar seem to have shifted to a different level and won\u2019t return in the short term. It seems there is no longer the seller from yesterday [Tuesday], but there is also no buyer at better prices. That is the feeling looking at prices today [Thursday],\u201d said Ivo Chermont, chief economist at Quantitas.<\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"46\" data-block-id=\"8\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">One of the firms to recently change its asset allocation was Sycamore Capital, which has $180 million under management and reduced its exposure to Brazilian stocks from 5% to close to zero in client portfolios, according to\u00a0<strong>Jean Van de Walle<\/strong>, the wealth manager\u2019s investment director.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"42\" data-block-id=\"9\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">One factor behind the decision was the high probability of President\u00a0<strong>Luiz In\u00e1cio Lula da Silva<\/strong>\u00a0(Workers\u2019 Party, PT) winning, Walle said. \u201cMy investment thesis was based on Lula\u2019s defeat and Brazil joining a movement toward reforms more favorable to private-sector investment.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"35\" data-block-id=\"10\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">Persistent inflation and the political clash between the local administration and\u00a0<strong>Donald Trump<\/strong>\u00a0were additional reasons for the change. Following the adjustments, the executive said he now holds only small positions in Vale and Petrobras.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"40\" data-block-id=\"11\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">In the foreign-exchange market, the foreign investor\u2019s moves on Monday and Tuesday may have encouraged local funds\u2019 activity on Wednesday, when they bought $1.3 billion, according to B3 data on the derivatives market cited by currency traders and fund managers.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"72\" data-block-id=\"13\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">Although the data contain some \u201cnoise,\u201d because they classify local funds operated from abroad as nonresident transactions, the indicator provides guidance to market participants. In April this year, the bet in favor of the real had approached a record level, surpassing the $12 billion threshold. Since then, that position has declined sharply and, according to market participants, the net position is now short the dollar against the real by only $600 million.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"27\" data-block-id=\"14\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">If pessimism persists, the net short-dollar position could become a long position in the U.S. currency, something that has not occurred since June 2, 2025, traders said.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"82\" data-block-id=\"15\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\"><strong>Jorge Dib<\/strong>, a portfolio manager at Galapagos Capital, notes that it is difficult to determine the true price-setter in the foreign-exchange market but says that when looking at the firm\u2019s model for the real\u2019s movement against other currencies, it is possible to see that politics is on the radar. \u201cIt seems to me that there is an increase in volatility because of the election, and if you look at the history of other election years, we will see that this is common.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"65\" data-block-id=\"16\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">The executive explains that in the \u201ccarry-to-vol\u201d strategy, volatility carries significant weight, so investors who had been pursuing this type of trade in Brazil because of high interest rates may reduce their exposure as fluctuations increase. \u201cGiven the calendar, with a \u2018deadline\u2019 for the formal registration of candidates, an increase in volatility is to be expected because the election period is effectively beginning,\u201d he said.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"39\" data-block-id=\"17\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">In Dib\u2019s view, even if volatility increases over the coming months, if the external environment remains favorable to carry trades and interest rates remain high in Brazil, the domestic currency is likely to regain ground in the post-election period.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"49\" data-block-id=\"18\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">\u201cThis is even with the more adverse seasonal flow, because if the real becomes more depreciated than its peers and external tailwinds are favorable, an opportunity opens up because interest rates will still be high and volatility will fall again. In other words, the carry trade becomes attractive again.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"30\" data-block-id=\"20\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">Although he attributes the greater volatility to the election scenario, the Galapagos manager says foreign withdrawals from Brazil are not driven by this factor, but rather by the global context.<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"87\" data-block-id=\"21\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">This line of reasoning is shared by\u00a0<strong>Gustavo Medeiros<\/strong>, global head of macroeconomic research at Ashmore. In his view, foreign capital withdrawals from the local stock market appear to be more technical than directly related to the election or a rotation into other emerging markets. The Ashmore executive explains that foreign flows into emerging markets have been negative in 2026, mainly because of heavy outflows from Taiwan and South Korea following strong gains in those countries\u2019 stock markets, a move he considers \u201cvery likely a portfolio rebalancing.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"37\" data-block-id=\"22\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">Although he does not see the approaching election as a driver of stock-market outflows, Medeiros said he is cautious about Brazil\u2019s contest in a scenario in which, according to him, \u201cfiscal risk is still not priced in.\u201d<\/p>\n<\/div>\n<div class=\"mc-column content-text active-extra-styles \" data-block-type=\"unstyled\" data-block-weight=\"54\" data-block-id=\"23\">\n<p class=\" content-text__container \" data-track-category=\"Link no Texto\" data-track-links=\"\">During the session, interest-rate futures initially appeared set to decline across the yield curve, but short- and medium-term rates ended more stable, while long-term rates rose, affected by other domestic markets. The DI rate maturing in January 2027 ended unchanged at 13.75%, while the DI rate for January 2031 rose from 14.455% to 14.53%.<\/p>\n<p data-track-category=\"Link no Texto\" data-track-links=\"\">*By Arthur Cagliari, Bruna Furlani, Maria Fernanda Salinet and Gabriel Caldeira\u00a0\u2014 S\u00e3o Paulo<\/p>\n<p data-track-category=\"Link no Texto\" data-track-links=\"\">Source: Valor International<\/p>\n<p>https:\/\/valorinternational.globo.com\/<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Ibovespa and real move away from the year&#8217;s best level as election approaches and President Lula is poised to win &nbsp; &nbsp; &nbsp; &nbsp; 08\/14\/2026 Gustavo Medeiros \u2014 Photo: Reprodu\u00e7\u00e3o\/Youtube The fast-approaching election period has heightened caution toward Brazilian markets among foreign investors, who have been making sizable withdrawals from the country. Data from B3 [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[27075,27076],"class_list":["post-99560","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-foreign-investors-accelerate-exit-from-stocks","tag-fx-ahead-of-election"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Foreign investors accelerate exit from stocks, FX ahead of election - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/foreign-investors-accelerate-exit-from-stocks-fx-ahead-of-election\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Foreign investors accelerate exit from stocks, FX ahead of election - Murray Advogados\" \/>\n<meta property=\"og:description\" content=\"Ibovespa and real move away from the year&#8217;s best level as election approaches and President Lula is poised to win &nbsp; &nbsp; &nbsp; &nbsp; 08\/14\/2026 Gustavo Medeiros \u2014 Photo: Reprodu\u00e7\u00e3o\/Youtube The fast-approaching election period has heightened caution toward Brazilian markets among foreign investors, who have been making sizable withdrawals from the country. 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