Brazil Stocks Trim Losses After Flirting With Bear Market
- Benchmark Ibovespa index is down 19% since peaking in June
- Sluggish growth, higher rates cloud outlook for local stocks
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Brazilian stocks pared losses after nearing a bear market, but still posted their worst week since the early days of the pandemic amid concern over the country’s fiscal outlook and growing bets on higher interest rates.
The Ibovespa closed 1.3% lower, after falling as much as 4.5% earlier Friday. The stock gauge moved off the day’s lows after Economy Minister Paulo Guedes vowed to stay on his post and defended the government’s push to increase social aid to the poorest. Still, the benchmark stock index led global losses this week, its worst since March 2020, and has fallen 19% from a June peak.