Breaking News
Get 40% Off 0
🔎 See NVDA full ProTips for an instant risks or rewards Claim 40% OFF

Brazilian markets open down slightly after pro-Bolsonaro riot

Published Jan 09, 2023 22:52
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
EWZ
-0.12%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BRL/USD
-0.15%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
iBOV
-0.08%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Geoffrey Smith

Investing.com -- Brazilian stocks opened around 1% lower on Monday in the wake of a violent riot at the weekend in which supporters of the ousted President Jair Bolsonaro temporarily stormed Congress and a handful of government buildings.

By 09:10 ET (14:10 GMT), the iBovespa benchmark futures contract was down 831 points, or 0.7%, while in premarket trading in New York, the MSCI Brazil stocks ETF (NYSE:EWZ) was down 1.7% at 27.83. The Brazilian real, meanwhile, fell 1.2% to trade at 5.2904 against the dollar.

Both were within their recent trading ranges, apparently reflecting a degree of confidence that the riot will not lead to any more long-lasting political turbulence in South America's largest economy. President Lula Inacio 'Lula' da Silva, who was inaugurated for another term as President barely a week ago, vowed to punish the perpetrators and to 'follow the money' in an investigation into who coordinated the attack.

Brazil adopted a new democratic constitution in 1988 but its transfers of power have been stormy affairs in recent years, overshadowed by mutual accusations of corruption by the two leading parties. Lula was only able to run for president last year after his conviction on corruption charges was annulled.

Citi analysts said in a note that any weakness in Brazilian assets was likely to be short-lived. Others noted that Brazil's high interest rates, a result of early action to forestall the inflation surge that rocked most of the world last year, should protect the real from depreciating very far. The central bank's key interest currently has stood at 13.75% since August.

On Sunday, rioters had stormed the central government district, taking over Congress, the Supreme Court and other buildings in an effort to overturn the result of last year's election, in which Lula defeated Bolsonaro. As with U.S. President Donald Trump in 2020, Bolsonaro has refused to accept the result as legitimate and refused to attend his successor's inauguration. In contrast to Trump, though, he left the country in order to avoid the ceremony. According to the BBC, he is currently believed to be in Florida.

Bolsonaro denied instigating the riot on Sunday.

The National Guard restored order several hours after the riot started on Sunday, with the police - whose initial passivity in the face of the crowd drew sharp criticism from the government and Supreme Court at the weekend - making over 300 arrests.

Governments around the world, from the rest of Latin America to China, the U.S. and Russia, all condemned the attempted putsch. Even Ukraine, which Lula has criticized for provoking Russia's invasion last year, added its voice - foreign minister Dmytro Kuleba offering the country's "full support to the democratically elected government of @LulaOficial" on social media.

Brazilian markets open down slightly after pro-Bolsonaro riot
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email