The B3, the main index of the Brazilian stock exchange, ended this Friday (20) in decline, despite having shown signs of recovery throughout the day.
Bovespa has the worst weekly performance since October 10, 2008 and has accumulated a drop of 18.88%. Down approximately 40% in 2020.
Faced with the expectation of a global recession, even with stimuli from central banks and governments, fear of the impacts on the economy due to the coronavirus pandemic invariably takes hold of the market.
The Ibovespa fell 1.85%, to 67,069 points. At the lowest point of the day, the index reached 72,247 points. It is simply the worst weekly performance since the time of the US financial crisis, according to Economatica.
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The dollar closed lower, however, still above R$ 5.
Both Azul (+15.29) and Gol (+16.48%) grew, managing to recover part of the sharp recent falls. Embraer (-12,95%) and Sabesp (-11,83%) showed the biggest casualties this Friday.
Last Thursday (20), the Ibovespa closed at a high of 2.15%, at 68,331 points. A respite from the recent sharp falls, which made the index touch an intraday low since July 2017 earlier in the session that preceded it.
World and national scenario
The Brazilian federal government revised and reduced in less than ten days its projection for the growth of the Gross Domestic Product (GDP) this year. After updating its expectation from 2.4% to 2.1%, it again lowered the estimate and started projecting an expansion of just 0.02% for this year. What does stability mean.
Within the measures announced the day before, the government claims it plans to pay aid to workers who receive up to 2 minimum wages and are affected by the reduction in working hours and wages proposed this week by the federal government. It also announced that it intends to pay the first 15 days of sick leave if the worker has contracted the coronavirus.
See too: GDP forecast drops to 0.02% in 2020 and government announces measures.
