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Brazil's Assets Dive as Political Crisis Engulfs President Temer

  • Real posts biggest decline since January 1999; stocks tumble
  • The so-called country risk surges most since June 2013
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What a New Political Crisis Means for Brazil

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Brazil’s real, stocks and bonds tumbled as a fresh political crisis ensnared President Michel Temer and threatened to derail an agenda designed to pull Latin America’s largest economy out of its deepest recession on record.

Trading on the Ibovespa briefly came to a halt Thursday, sinking the most since 2008, with state-owned companies from Petroleo Brasileiro SA to Banco do Brasil SA among the worst losses. The real posted its biggest slide since 1999 even after the central bank intervened to support the currency. The premium investors demand to own the nation’s sovereign bonds rather than U.S. Treasuries jumped the most since June 2013.