This Thursday (27th), Bovespa operates in decline around 2%. It was the biggest drop since May 18, 2017.
While the dollar reached a record high of R$ 4.50, the main index of the Brazilian stock exchange, B3, operates in a sharp fall. On Wednesday (26), Ibovespa retreated 7%, to 105,718 points, setting the biggest drop in the last 3 years.
On the day, the shares of Petrobras and Vale retreated around 3%, a day after falling around 10%.
On Wednesday (26), the Ibovespa retreated 7%, to 105,718 points. During this week in the face of the expansion of the coronavirus, the main exchanges suffered. With Asia recording hundreds of new cases and the United States warning of a possible pandemic. The main concern is that the coronavirus will impact the performance of global activity. In Brazil, the first case was confirmed yesterday.
In the month, the stock market has an accumulated drop of 7.07%. In 2020, the pullback is 8.58%. Investors fear the impacts of the expansion of the coronavirus on the growth of the world economy and several companies warned that the outbreak will impact their finances, including United Airlines, Mastercard, Danone and Diageo.
Tension on the global stage
Abroad, European stock markets had another day of decline. Investors fear the impacts of the advance of the coronavirus on the growth of the global economy and companies such as Microsoft and AB InBev have warned that the outbreak will affect their profits and results.
On Thursday, oil prices fell by around 2%, setting the fifth consecutive day of losses, to the lowest level since January 2019. Brent crude fell below US$ 53 a barrel, while US crude fell below US$ 48 per barrel.
Due to the large flow of capital to less risky markets, the dollar continues to appreciate against other currencies around the world, especially against the currencies of emerging countries such as Brazil. It also gains strength against the Mexican and Chilean pesos, Turkish lira, and South African rand. In relation to strong currencies, it had a sharp drop of 0.28%. Losing almost 0.5% against the yen, a sign of caution in the international environment.
