‘Bloody Monday’: B3 e CSN desabam 40%, BTG e BB mergulham 30%
Salve-se quem puder. Como esperado, o Ibovespa desabou desde a abertura, com os investidores desfazendo as posições que haviam montado nas últimas semanas.
"Bloody Monday" saw significant drops across Brazil's markets, with the Ibovespa index plunging over 16% within minutes of opening. The circuit breaker mechanism was triggered immediately after a more than 15% drop. Small caps index SMALL11 saw a decline of roughly 30%. Multiple stocks experienced a 30% or more decline in the morning trading session, including B3, CSN, C&A, Assaí, Magazine Luiza, Localiza, and Cyrela, which fell between 40% and 50%.
Vale saw a 35% decrease, Banco do Brasil 30%, and Bradesco 25%. Some declines seem excessive due to stop losses, commented a brokerage manager, "It will take some time to separate the wheat from the chaff." While export-focused companies like Gerdau, Suzano, Vale, and Embraer rose 5-10% by the end of the morning. The Ibovespa futures market was halted when it opened lower than 15%, and when it rebounded, the drop hit 19.7%.
The Brazilian real surged against the dollar by 12%, reaching R$5.60. Long-term interest rates jumped to 182 points-base, hitting the oscillation limits set by B3 for Ibovespa, mini-futures, dollar futures, mini-dolar futures, and DI futures contracts for today's session. B3 raised the oscillation limits for Ibovespa, mini-futures, dollar futures, mini-dolar futures, and DI futures contracts twice.
The Tesouro canceled inflation-linked and fixed-rate bond auctions for March and May but maintained the Selic-linked bond auction. JP Morgan downgraded Brazil's sovereign debt in dollars from neutral to underweight, warning of a "significant correction" unless "market pressure leads to fiscal concessions." The bank kept an overweight rating for Brazilian company stocks with investment grade, which could withstand a tougher scenario and attract investors looking to sell riskier assets.
However, it recommended selling high-yield securities. BTG projected a 30% drop in the Ibovespa and a return to real interest rates of 8% if there is no clear fiscal adjustment. Current long-term interest rates are at 6.7%, down from 6.9% during Dilma Rousseff's two mandates, and 6.7% during Lula's three mandates.
Written by urgent.news from Brazil Journal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
