In 2020, the Ibovespa index has already fallen by more than 15%. Investors around the world remain concerned about the impact of the coronavirus outbreak.
This Friday (6), faced with yet another day of tension in foreign markets, and concerns about the effectiveness of measures such as interest rate cuts to shield economies from the impacts of the coronavirus outbreak. B3, the main index of the Brazilian stock exchange, was operating in a significant decline, reaching lows that had not occurred since August last year.
The benchmark index of the Brazilian stock market, the Ibovespa, fell 4.14%, to 97,996.77 points. It is the lowest closing level since August 27 (97,276 points). The financial volume in the trading session was again strong and totaled 39.9 billion reais.
The day before, the Brazilian stock market fell 4.65% to 102,233 points. Totaling a drop of 5.95% for the week. For the year, the decline has already reached 15.28%. On the day, the US dollar fell 0.36%, quoted at R$ 4.6343.
As of March 4, foreign investors had withdrawn R$44.8 billion from the Brazilian stock exchange. This year to date, the amount exceeds the R$44.5 billion that withdrew in the entire last year. This was a record for a closed year in the entire historical series released by B3, since its creation in 2004.
“As coronavirus cases around the world continue to grow and put the ability of major global economies to respond to the outbreak in question, fears of a global recession are growing,” wrote the Rico brokerage team.
Oil price drops more than 5%
Major European stock markets fell by more than 3% on Friday and the price of a barrel of oil fell by 5%. This was shortly after rumors emerged that Russia would not support OPEC's call for an extra cut in production, according to Reuters.