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Amazon Fires Are Another Warning for Brazil Stocks, JPMorgan Says

Members of a firefighting task force work on putting out a fire in the Amazon rainforest near Porto Velho, Rondonia state, Brazil on Aug. 25, 2019.
Members of a firefighting task force work on putting out a fire in the Amazon rainforest near Porto Velho, Rondonia state, Brazil on Aug. 25, 2019.Photographer: Leonardo Carrato/Bloomberg

The fires raging through Brazil’s Amazon rainforest could end up hurting investment in the stock market of Latin America’s biggest nation, according to JPMorgan.

“We are resistant to attribute the recent underperformance of Brazilian equities to the global commotion on the Amazon,” JPMorgan strategists led by Emy Shayo Cherman wrote in a report from Aug. 27. “But we recognize that it has entered the list of yellow flags,” they said, reiterating an overweight rating for Brazil stocks.