Bovespa Falls Most Since June on Inflow Tax, China Rate Concern
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The Bovespa stock index fell the most in 16 weeks on concern rising borrowing costs in China will hurt demand for commodities while Brazil’s attempts to curb currency gains will scare off foreign investors.
Vale SA, the iron-ore producer whose top export market is China, dropped the most since August after the Asian country raised interest rates for the first time since 2007. State oil producer Petroleo Brasileiro SA sank 4.2 percent as crude tumbled the most in eight months. BM&FBovespa SA, which runs the Sao Paulo exchange, plunged for a second day after the government raised taxes on some inflows for the second time this month to prevent currency appreciation.