Brazil’s benchmark Bovespa index fell more than 4% Monday following President Jair Bolsonaro's decision last week to replace the chief executive of state oil company Petrobras. The company's shares plunged more than 21% on news that the government nominated an army general with no oil and gas industry experience as its new CEO.
The Brazilian real climbed almost 1% against the dollar on Thursday, as a rout on Wednesday led to a technical correction and a key poll showed Brazil's left failing to gain steam in presidential elections scheduled for October.
Brazilian President Michel Temer said on Thursday there was no risk of a currency crisis in Latin America's largest economy despite sharp falls in the exchange rate, while the central bank chief pledged to maintain the bank's intervention in the market.
Brazilian markets plummeted on Thursday as allegations that President Michel Temer condoned bribes to silence a key witness deflated investor optimism about the prospects for his ambitious pension and labor reform agenda.
Brazil's interim president announced austerity measures on Tuesday aimed at pulling Latin America's largest economy from its worst crisis in decades, warning that a failure to act would sentence future generations to “extraordinary hardship.” Speaking with government leaders in a national televised meeting, interim president Michel Temer, 75, also banged his hand on the table while insisting he was up to the job.
President Dilma Rousseff pledged on Wednesday to form a government of national unity if she survives an impeachment vote in Congress this weekend, but the odds of became steeper as allies continued to desert her. In effect a stream of defections from Rousseff's coalition makes it increasingly likely she will lose Sunday's ballot in the Lower House of Congress.
Brazilian share prices surged on Thursday to close 6.6% higher, a seven-year record, after fresh setbacks to populist President Dilma Rousseff raised the prospect of her being driven from power.
Brazil’s main stock exchange Bovespa is implementing changes to its benchmark Ibovespa stock index, the first since 1968, in an effort to correct recent distortions and better reflect the performance of local shares.
United States shares staged a late recovery on Monday to post only their second positive close of the month. Earlier, European and Asian markets fell on fears that Greece may default. In Latin America results were much in line with the US.
Latin American stocks fell on Monday as fears of a recession in Europe and the United States mixed with anxiety about the health of global banks to drive indexes below support levels, suggesting more losses.