Brazil Real Falls as Stocks Hit 6-Year Low on Recession Forecast
- Manufacturing at Brazil's top trading partner weakened
- Largest Latin America economy forecast to shrink 2.95% in 2016
2016: More Turbulence for the Markets?
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Brazilian stocks fell and the real dropped for a fourth session as forecasts showed Latin America’s largest economy is heading to its deepest recession in more than a century.
The real dropped 2 percent to a three-month low of 4.0399 per dollar Monday after a manufacturing slump in China, Brazil’s top trading partner, triggered a global selloff that halted equity trading in Shanghai. The benchmark Ibovespa equity gauge fell to the lowest since 2009.