Ibovespa has dropped from 10.26% to 66.961 points on the day and triggers a circuit breaker. Investors look for ways to alleviate effects
This Wednesday (18), the Brazilian stock exchange, B3, operated in a downturn and had its business suspended. The circuit breaker came at 1:18 pm on a pullback of 10.26%, the sixth time in the last eight days. After closing higher from 4,58% at 74,617 points on Tuesday.
The exchange resumed trading at 1:53 pm, with a drop of 10.24%. At 2:50 pm, the Ibovespa dropped 14.45%, to 63,833 points.
According to stock exchange rules, if the Ibovespa falls by more than 15%, a second circuit breaker in this session will be triggered. The interruption continues for 1 hour.
This is the sixth time since the start of the coronavirus pandemic that the circuit breaker has been triggered in just eight sessions. The last time was on Monday, the 16th. The day the Ibovespa dropped by 13.92%.
The stock market slump is following the tension and results of global markets. Which is currently fearful that the series of measures announced by central banks and governments to combat the impacts of the coronavirus will not be enough to prevent a global recession.
The fear of a global recession
This Wednesday, global markets live another day of nervousness. They are facing fears of the possibility of a global recession, even with all the measures taken by governments to combat the effects of the pandemic.
In the main stock exchanges of the world the mood was not of optimism.
“Investors continue to assess the effectiveness of fiscal and monetary stimuli in dampening the economic impacts arising from the Covid-19 outbreak”, said the Guide Investimentos team. "Without an improvement on the horizon, warnings of impending recession continue to speak louder."
“Right now, the overriding concern is that all shutdowns in almost everything will lead to a recession,” said Michael James, managing director of equity trading at Wedbush Securities.
