Brazil Markets Plunge as Bolsonaro Vows to Dole Out More Aid
- Signs of further spending ahead of election spook investors
- Government reviewing how the spending cap is calculated
Jair Bolsonaro
Photographer: Andressa Anholete/BloombergThis article is for subscribers only.
Brazilian assets tumbled Thursday as prospects the government will bypass fiscal rules to boost spending fueled concern over the nation’s fiscal trajectory.
The benchmark stock index dropped 2.8%, extending its decline this week past 6%, and interest-rate swap contracts surged as traders weighed President Jair Bolsonaro’s pledge to offer aid to truckers and news his administration will seek to change how the spending cap that limits the growth of public expenses is calculated.