Für Neulinge » Mexico's peso also rebou

would depend on the unemployment rate and， above all， fiscal reforms in the corporate sector， which both U.S. President Donald Trump and congressional House Speaker Paul Ryan are eager to implement to reduce the tax burden on corporations from 35 percent to 20 percent.


According to Pfeifer， if the interest rate remains on the rise， the medium-term "risk" for Brazil is that its large pension funds， which operate under strict regulations， "could migrate" to the U.S. market to take advantage of the increase.


Brazil could， of course， counter that trend "by deepening reforms" which the current government is undertaking.


"President Michel Temer， who has already said he will not run in 2018 elections， has the mission to do the dirty work of putting in place labor， tax and social security reforms， which market operators are expecting， but which will come at an electoral cost，" said Pfeifer.


These reforms are "very attractive" and will "cement the foundations for economic growth" that will be felt during the next government， he said.


If Temer fulfills his reformist agenda， according to Pfeifer， the stock exchange index， currently at around 65，000 points， could reach 80，000 points by year's end.


"International markets are convinced that emerging economies are on the threshold of a new wave of growth， which perhaps won't be as evident as the first， and the first country they mention is Brazil，" said Pfiefer.


Mexico's peso also rebounded somewhat on news of the Fed hike， closing at 19.55 pesos to the dollar.


CI Banco senior financial analyst James Salazar credited the currency's positive reaction to the fact