Brazil’s stock exchange suspends trading after 10% fall
By the AFREEQUE newsroom, based on Sabcnews
Brazil’s stock exchange suspended trading for 30 minutes after the Ibovespa index fell by 10%, while the real lost about 12% against the dollar. The market rout led the Treasury to cancel bond auctions scheduled for 27 and 29 October, according to exchange operator B3 and Brazilian authorities.
Trading on Brazil’s stock exchange was suspended for 30 minutes on Monday after the benchmark Ibovespa index fell by 10%, SABC News reports, citing exchange operator B3. The circuit-breaker mechanism was triggered the day after President Luiz Inácio Lula da Silva was re-elected.
The fall led to a depreciation of about 12% in the real against the dollar and a drop of nearly 15% in Ibovespa futures. Brazil’s Treasury cancelled its auctions of inflation-linked and fixed-rate bonds, scheduled for 27 and 29 October.
Markets had risen earlier in October, when Flávio Bolsonaro, son of former president Jair Bolsonaro and a rival of Lula, came first in the first round. On Friday, the Ibovespa closed nearly 7% above its level before that vote, and the real had gained nearly 5% against the dollar.
Flávio Bolsonaro refused to recognise the result and promised to seek the election’s annulment, fuelling investor uncertainty. The suspension follows Lula’s re-election with 51.75% of the vote.
