Ibovespa Declines on Brazil Contraction Forecast, Chinese Slump
- Benchmark equity gauge slumps for fourth straight session
- Largest Latin America economy forecast to shrink 2.95% in 2016
What's Ahead for Brazil in 2016?
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Brazilian stocks fell as analysts turned more pessimistic on Latin America’s largest economy amid weaker-than-expected manufacturing data in China.
The benchmark Ibovespa equity gauge slumped for the fourth straight session, reaching the lowest since 2009, after analysts in a central bank survey forecast a deeper recession this year than previously expected, as economic activity and confidence sink amid a political crisis. Brazil’s economy will shrink 2.95 percent this year, according to the weekly survey of about 100 economists, compared with a prior estimate of a 2.81 percent contraction. It was the 13th straight week that analysts lowered their 2016 outlook.