This Thursday (27), Bovespa is down around 2%. It was the biggest decline since May 18, 2017.
While the dollar reached a record high of R$4.50, the main index of the Brazilian stock exchange, B3, is operating in a sharp decline. On Wednesday (26), Ibovespa fell 7%, to 105,718 points, setting the biggest drop in the last 3 years.
On the day, Petrobras and Vale shares fell around 3%, one day after falling around 10%.
On Wednesday (26), the Ibovespa fell 7%, to 105,718 points. During this week, given the expansion of the coronavirus, the main stock exchanges suffered. With Asia registering hundreds of new cases and the United States warning about 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 accumulated a drop of 7.07%. In 2020, the decline is 8.58%. Investors fear the impacts of the spread of the coronavirus on the growth of the global economy and several companies have warned that the outbreak will impact their finances, including United Airlines, Mastercard, Danone and Diageo.
Tension on the global stage
Abroad, European stock markets fell again. Investors fear the impact of the coronavirus on global economic growth, 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 about 2%, marking the fifth consecutive day of losses, to the lowest level since January 2019. Brent crude fell below US$$ 53 per barrel, while U.S. crude fell to below US$$ 48 per barrel.
Due to the large flow of capital to lower-risk markets, the dollar continues to appreciate against other currencies around the world, especially against the currencies of emerging countries such as Brazil. It is also gaining strength against the Mexican and Chilean pesos, the Turkish lira, and the South African rand. In relation to strong currencies, it has seen a sharp drop of 0.28%. It has lost almost 0.5% against the yen, a sign of caution in the international arena.