Ibovespa Leads Americas Losses on Moody's Cut as Real Advances
- Vale and Itau among biggest contributors to gauge's slide
- Currency erases drop as commodity gain bolsters export outlook
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The Ibovespa led losses in the Americas after another credit rating cut to junk spurred speculation the country will struggle to shore up its finances amid the worst recession in a century. The real erased its decline as commodities gained.
Brazil’s benchmark stock gauge slumped for a second day after the nation lost its investment grade at Moody’s Investors Service. Lender Itau Unibanco Holding SA extended this year’s slide while Vale SA, the world’s largest iron-ore producer, sank 4.4 percent. The real was little changed, after dropping as much as 1.2 percent, as a rally in raw materials bolstered the revenue outlook for the commodity-exporting country.