Brazil Stocks Decline as Brexit Concerns Rattle Global Marketsby
Material producers are worst performers on the Ibovespa
Lender Itau declines on prospect of lower interest rates
Brazil’s benchmark Ibovespa index fell for a third day, joining a global decline, as the prospect that the U.K. will leave the European Union sparked a selloff in riskier assets.
A gauge of raw-materials producers was the worst performer among 10 industry groups. State-controlled oil producer Petroleo Brasileiro SA followed a decline in crude. Lender Itau Unibanco Holding SA contributed the most to the Ibovespa’s decline.
Emerging-market stocks headed for their steepest decline since February after polls of British voters published over the weekend showed the pro-EU campaign and those who support an exit running neck and neck. The pound fell to a two-month low.
"Brazil is suffering with a strong global risk aversion today," Raphael Figueredo, an analyst at the brokerage Clear Corretora, said from Sao Paulo. "The local scenario is negative and the prospects for our exporters are discouraging."
Brazil’s benchmark equity index fell 0.5 percent to 49,186.07 at 10:43 a.m. in Sao Paulo as all but 10 of its 59 stocks dropped. Petroleo Brasileiro declined 0.9 percent, and Itau retreated 0.6 percent.