Ibovespa Declines Most in World Amid Heightened Political Crisisby
Court rules against lower house head's plan to oust Rousseff
Lenders Itau, Bradesco lead losses in benchmark stock gauge
Brazil’s stocks led declines among the world’s biggest markets after a court ruling against a maneuver to oust President Dilma Rousseff added to speculation that a recovery of Latin America’s largest economy will be delayed.
The Ibovespa halted a nine-day rally after Brazil’s superior court ruled against procedures laid out by lower house President Eduardo Cunha establishing a step-by-step guide to open impeachment procedures. Cunha said he’ll continue to dispatch requests as planned.
"What’s killing the market is the lack of definition," Paulo Henrique Amantea, an analyst at brokerage H.H. Picchioni said from Belo Horizonte, Brazil. "Nobody knows what’s going to happen at a time when the economy is going from bad to worse.”
The Ibovespa lost 2.5 percent to 48,085.81 at 11:27 a.m. in Sao Paulo, led by lenders Itau Unibanco Holding SA and Banco Bradesco SA. Stocks also joined a global slide as a decline in Chinese imports underscored the headwinds to global growth. The Asian nation is Brazil’s top trading partner.