The markets in Brazil fell sharply in the opening trade on Thursday, which triggered some automatic suspension of trading, reports Bloomberg News.
The decline comes in the wake of president Michel Temer late on Wednesday dragged into a mutskandal.
Börsterminerna fell with the Ibovespa index down 10 per cent, and the trade in futures for currency real was stopped after a decline of over 6 per cent. Bond yields rose sharply.
The ministry of finance stated that they monitor the situation closely and is ready to act to the market should be able to function and have sufficient liquidity.
Mutskandalen impairs the prospect of Michel Temer will be able to get through the reform agenda that has been seen as a new start for the economy.
Brazil’s former president Dilma Rousseff, after a corruption scandal.
The brazilian ETF n iShares MSCI Brazil Capped ETF (EWZ) shows a decline of 16.50 percent in pre-market.
Tradingportalen/Agency Directly.
Questions and comments always welcome in the newsroom[at]tradingportalen.com