Brazil Markets Cap Week of Losses After Spending Plan
- Real erased Friday drop as Congress heads push for constraint
- Spending package disappointed, adding to fiscal concerns
Investors have rushed to dump Brazil assets this year amid concern over the nation’s growing debt levels.
Photographer: Paulo Fridman/BloombergThis article is for subscribers only.
Brazilian markets wrapped up a turbulent week after a much vaunted plan to cut government spending came in well short of expectations, adding to angst over the country’s budget.
The package, detailed by Finance Minister Fernando Haddad on Thursday, sent the currency tumbling to an all-time low, and stocks down the most since 2023. Losses extended early Friday as US markets came back from a holiday, with the real dropping as much as 1.7% before rebounding as Haddad, along with Congress leaders, tried to reaffirm their commitment to fiscal constraint.