Ibovespa Leads Americas Losses as Real Slumps on Moody's Signal
- Second downgrade to junk seen triggering rout in assets
- Bradesco, Petrobras contribute most to stock gauge's decline
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Brazil’s stocks led losses in the Americas and the real declined after Moody’s Investors Service signaled it may cut the nation’s credit rating to junk amid forecasts for political turmoil and the longest recession since the 1930s.
Lender Banco Bradesco SA contributed the most to the drop in the Ibovespa. State-controlled oil producer Petroleo Brasileiro SA extended this year’s plunge to 26 percent. The real posted the biggest slump among Latin American currencies. Yields on Brazil’s $4.3 billion benchmark bonds due 2025 climbed to the highest level since they were issued in Oct. 2013. The cost of insuring Brazilian debt in the credit-default swaps market increased to a seven-week high.