ZCZC
BCN-09
BRAZIL-MARKET-FOREX
Sao Paulo stock market suffers steep drop
SAO PAULO, June 8, 2018 (BSS/AFP) – The Sao Paulo stock market closed 2.98
percent down Thursday after a day of torrid trading and a continued slide in
the Brazilian real against the dollar.
Earlier in the day, the Ibovespa index had lost 6.2 percent, reflecting
growing pessimism over Brazil’s economic and political outlook, analysts
said.
The dollar closed at 3.92 reais, compared to 3.86 at opening. Earlier the
dollar rose to 3.94 reais, the strongest rate against Brazil’s currency since
2016.
Brazil’s economy, which is making a feeble recovery from its worst
recession in history, came to a standstill for more than a week last month
when truckers went on strike nationwide to protest high fuel prices.
The country is being shaken by an ongoing corruption scandal that has
disrupted every political party.
Markets are also concerned in the run-up to a general election in October,
with centrist, traditionally pro-market presidential candidates so far making
little ground in opinion polls.
Energy and banking stocks led the losses on the Ibovespa, with Petrobras
preferential shares down 3.49 percent and Banco do Brasil down 4.01 percent.
BSS/AFP/HR/0945