Brazilian Stock Exchange Slumps Over Four Percent, Index Closes below 100,000 Points

RIO DE JANEIRO, BRAZIL – The Brazilian stock market dropped more than four percent on Friday, March 6th, and the main stock index fell below the symbolic 100,000 mark, widening the recent losses.

The IBOVESPA reflects the panic spread around the world that the coronavirus will cause more damage to the global economy than anticipated.

By 11:30 AM, the index dropped 4.18 percent to 97,964 points. By Thursday, March 5th, the Exchange had already closed lower by more than 4.6 percent.

Abroad, the European Stock Exchanges also operate in a sharp downturn, tumbling around three percent.

As for the commercial dollar, after having started the trading session down, it rose 0.02 percent, quoted at R$4.654, at 11 AM. On Friday morning, the US currency had already reached R$4.672. The fluctuations were milder than on Thursday when it exceeded R$4.667 during the trading session.

The Central Bank offered US$3 billion in foreign exchange swap auctions to contain the rate. The US currency closed at R$4.653 the day before.