Ibovespa drops 10.26% to 66.961 points on the day and triggers a “circuit breaker”. Investors seek ways to alleviate the effects
On Wednesday (18), the Brazilian stock exchange, B3, operated in decline and had its trading suspended. The “circuit breaker” occurred at 1:18 pm with a decline of 10.26%, it was the sixth time in the last eight days. After closing up 4.58% at 74.617 points on Tuesday.
The stock market resumed trading at 1:53 p.m., down 10.24%. At 2:50 p.m., the Ibovespa was down 14.45%, at 63,833 points.
According to stock exchange rules, if the 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, when the Ibovespa fell by 13.92%.
The stock market's fall is in line with the tension and results of global markets, which are 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 are experiencing yet another day of nervousness. They are facing fears of the possibility of a global recession, despite all the measures taken by governments to combat the effects of the pandemic.
The mood on the world's main stock exchanges was not optimistic.
“Investors continue to assess the effectiveness of fiscal and monetary stimulus in cushioning the economic impacts resulting from the Covid-19 outbreak,” said the Guide Investimentos team. “In the absence of any improvement on the horizon, warnings of an imminent recession continue to be heard louder.”
“The prevailing concern right now is that all the shutdowns in almost everything will lead to a recession,” said Michael James, managing director of equity trading at Wedbush Securities.