Brazilian stocks joined a rout in emerging markets, led by banks, amid speculation that Latin America’s largest economy will slump into a deeper recession. The real traded near a 12-year low.
The benchmark stock gauge extended a plunge from this year’s peak to almost 20 percent, approaching a so-called bear market, as President Dilma Rousseff grapples with an anemic economy amid impeachment talks and a widening graft probe at the state-controlled oil producer. The real has tumbled 23 percent this year, the most among 16 global major currencies tracked by Bloomberg.
The Ibovespa sank 1.6 percent to 46,710.48 at 11:09 a.m. in Sao Paulo, as lender Itau Unibanco Holding SA plunged to the lowest level since March 2014. The real was little changed at 3.4649 per dollar.