Ibovespa Leads World Declines as Impeachment Euphoria Fizzles
- Currency reversed losses on strong inflow from foreigners
- Petrobras tumbles as crude oil trades near $40 a barrel
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Brazil’s stocks led losses among world major benchmarks on speculation that the political crisis that has paralyzed Latin America’s largest economy is nowhere near the end. The real erased declines amid foreign inflows.
The Ibovespa extended a weekly drop on wagers that the process to impeach President Dilma Rousseff may take months and involve several votes in Congress. Oil producer Petroleo Brasileiro SA contributed the most to the gauge’s slump as a drop in crude to $40 a barrel dimmed the outlook for its offshore investments. Steelmaker Gerdau SA was the worst performer on the index after a newspaper reported it was cited in a corruption investigation. The real gained for a fourth day.