Investors Sour on Brazil Stocks on Intervention, Fed Fears
- Foreign outflows hit $6.6 billion between January and April
- Government spending, Petrobras CEO firing add to concerns
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Investors are turning more pessimistic on Brazilian equities as fears of political intervention and more government spending add to the lower appetite for risk sparked by the outlook of higher-for-longer rates in the US.
Banco Santander Brasil, which had one of the most bullish forecasts for Brazilian stocks, slashed its year-end target for the Ibovespa benchmark gauge to 145,000 from 160,000. A monthly Bank of America survey with Latin American equity fund managers showed only 19% of respondents expect the index will finish the year above 140,000 — that’s down from 63% in January.