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Brazil Assets Sink as Political Risk Flares Up Amid Protests

  • Currency, stocks led losses in global markets Wednesday
  • Chief Justice Fux issues harsh response to Bolsonaro attacks
Jair Bolsonaro, Brazil’s president, greets supporters during an Independence Day rally in Sao Paulo.
Jair Bolsonaro, Brazil’s president, greets supporters during an Independence Day rally in Sao Paulo.Photographer: Jonne Roriz/Bloomberg
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Brazilian assets tumbled on Wednesday, leading global losses, as President Jair Bolsonaro’s fiery rhetoric in protests the day before prompted a harsh response from the nation’s top court and muddied the country’s political and economic outlook.

The real fell 2.7%, the worst performing major currency, while stocks sank 3.5% to the lowest in more than five months. Brazilian markets were closed Tuesday for the country’s Independence Day holiday, when thousands of Bolsonaro supporters marched in pro-government demonstrations with slogans against the top court and calls for military intervention.