Ibovespa drops from 10.26% to 66.961 points on the day and triggers a “circuit breaker”. Investors look for ways to mitigate effects
This Wednesday (18), the Brazilian stock exchange, B3 operated in a fall and had its business suspended. The circuit breaker took place at 1:18 pm on a pullback of 10.26%, the sixth time in the last eight days. After closing higher at 4,58% at 74,617 points on Tuesday.
The exchange returned to operations at 1:53 pm, with a drop of 10.24%. At 2:50 pm, the Ibovespa retreated 14.45%, to 63,833 points.
According to stock exchange rules, if Ibovespa falls 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 on which the Ibovespa dropped to 13.92%.
The stock market crash is following the tension and results of global markets. That currently there are fears 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.
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 exchanges of the world, the climate was not of optimism.
“Investors continue to evaluate the effectiveness of fiscal and monetary stimuli in cushioning the economic impacts arising from the Covid-19 outbreak”, says the team at Guide Investimentos. “In the absence of an improvement on the horizon, warnings of an impending recession continue to speak louder”.
“Right now, the prevailing concern is that any shutdown in almost everything will lead to a recession,” said Michael James, managing director of equity trading at Wedbush Securities.
