In Brazil Stocks Drop Sharply While Dollar Zooms Up

São Paulo, Brazil's stock market, the Bovespa The dollar shot up 3.27% this Thursday, July 26, in Brazil, closing at 1.928 in relation to the real. This was the American currency's biggest value since May of last year. The sudden and brisk surge is being attributed by analysts to investors getting bearish on their riskier stocks and taking their money elsewhere. This is a phenomenon occurring all over the world right now.

When any factor stirs investors fear, as it happened this Thursday, they react running from emerging markets like Brazil and taking their money to investments they consider more secure, like US government securities.

The Ibovespa, the São Paulo stock exchange index, fell sharply declining more than 6% during yesterday's trading session and closing 3,57% down at the end of the day. This Thursday's slump was enough to wipe out the 7% in gains the Bovespa had brought this July.

The explanation for this market malaise is the world's concern with a possible crisis in the United Sates, which would reduce the amount of money circulating through the international finance markets.

6.3 billion reais (US$ 3.4 billion) in shares changed hands, well above the year's daily average of 4.1 billion reais (US$ 2.2 billion). Yesterday's result was the year's third worst drop for the Brazilian financial market.

On July 24, the Ibovespa had fallen 3.86% also in response to the American economy. The largest drop, of 6.62%, happened on February 27, in this case in reaction to a big slump at Shanghai's stock market, which reverberated throughout the world.

Tags:

Ads

You May Also Like

UK’s Flybe Gets Up to 26 Brazilian Embraer Jets, a US$ 870 Million Deal

Flybe, one of Europe’s leading low-cost airlines, today announced an agreement with Embraer for ...

Brazil’s First Astronaut May Help with Better Drugs and Search of ETs

During his conversation via videoconference with Brazil’s first astronaut, the Brazilian Minister of Science ...

Brazil’s Program to Improve Indians’ Diet

The National Health Foundation (Funasa) will spend money in 2005 on projects by the ...

Boeing Gives Brazil’s Moribund Varig a Break

Varig, Brazil-based airline, announced this Wednesday, January 4, in Rio de Janeiro, the closing ...

Dilma 48%, Serra 41%, Say Polls at Start of Second Round Race

Despite the glaring mistakes during the first round, Brazilians keep an eye on the ...

Brazil and Japan: A Powerful Duo Goes After UN Power

Japan and Brazil plan to press ahead in their efforts to gain permanent United ...

Best-seller Books, Plays and Movies

By Brazzil Magazine RIO Se Correr o Bicho Pega, Se Ficar o Bicho Come ...

Historical center of Joгo Pessoa, Paraнba state, Brazil

Despite Its Derelict Air, João Pessoa, Brazil, Has Some Charm

At the beginning of the year the coastal cities in the Northeast of Brazil ...

Brazil’s Drag Queen, the Toast of New Zealand, Stars in Own Play

Color, style, laughs, maybe some tears, live singing, lots of fun and glamour is ...

A Chance for You to Choose the Brazil You Like

Until January 30th, the popular vote is open for everyone who is interested in ...