Brazil Assets Slide as Election Angst Drives Outflows, Real Falls 3% and Ibovespa 4%
Updated
Updated · Bloomberg · Aug 11
Brazil Assets Slide as Election Angst Drives Outflows, Real Falls 3% and Ibovespa 4%
3 articles · Updated · Bloomberg · Aug 11
Summary
Brazilian assets logged some of the world’s biggest losses this week, with the real down nearly 3% and the Ibovespa off 4% since Monday.
Election uncertainty ahead of October’s presidential vote drove investor outflows, even as an index of emerging-market currencies rose 0.3% and most peers gained against the dollar.
The selloff deepened an earlier market retreat that had already pushed the real to a one-month low and hit stocks on fears over both the election and sticky rates.
Brazil’s losses now stand out globally, with the Ibovespa among the steepest declines across 92 major equity indexes tracked by Bloomberg.