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

Ethanol pump in Brazil

84% of Cars Sold in Brazil Run on Ethanol, Gasoline, or Both

Flex-fuel vehicles, with technology that enables them to be fueled with alcohol, gasoline, or ...

POR AÍ

I’m Crazy for You, America “Dealing with a completely different culture is a process, ...

60% of Wood Cut in Brazilian Amazon Goes to Waste

Studies by Brazil’s Amazonian Institute for Man and the Environment (IMAZON), a non-governmental organization ...

August 1994

CONTENTS: Cover: Fighting for the land (p. 7) Presidential election: we have a tie ...

Arabs and South Americans Meet in Brazil’s Business Fair

The South American-Arab Countries Entrepreneurial Fair began yesterday in BrasÀ­lia, the Brazilian capital. During ...

José Marcolino and family by Sérgio Tomizaki/Agência Meios

Recycling in Brazil Becomes Ticket Out of Poverty and Inspires World

When he was unemployed, after years working as a welder, 49-year-old José Marcolino da ...

Brazilian Referendum on Firearms Ban Is Mandatory

Brazil’s Minister Carlos Madeira, acting president of the Federal Elections Court (TS), confirmed October ...

HP Starts Selling Linux Powered Computers in Brazil

Mandriva, publisher of the popular Mandriva Linux operating system, announced a new partnership with ...

Brazil’s Petrobras to Invest US$ 15 Billion. Most Goes to US

Brazil government managed oil corporation Petrobras announced international investments totaling US$ 15 billion US ...

Federal Dental Program Caring for 60 Million Brazilians

Brazil’s Ministry of Health’s Buccal Health program, which now has a total of 10,240 ...