Correction in Brazil Stock Market has started.
(Photo by Chris Hondros/Getty Images)
Brazilian stocks fell the most in almost two months after China moved to cool property speculation and a fraud lawsuit against Goldman Sachs Group Inc. spurred a global equities rout.Commodities producers including Petroleo Brasileiro SA, Brazil’s state-controlled oil company, slid as crude dropped the most in 10 weeks. PDG Realty SA Empreendimentos e Participacoes led declines for homebuilders and retailers on speculation higher borrowing costs will curb demand. U.S. equities tumbled as the Securities and Exchange Commission sued Goldman Sachs.
“It’s the usual China and commodity concern, with Goldman just adding another negative,” Eric Conrads, a hedge fund manager at Mexico City-based Armada Capital SA, said in a telephone interview.
Brazil stocks declined as traders raised bets for interest rate increases and concern grew that Europe’s bailout of Greece will fail to prevent the debt crisis from spreading.READ MORE HERE.
The Bovespa stock index dropped 1.6 percent to 69,421.35, extending its retreat this week to 2.8 percent, the biggest weekly decline since Feb. 5. All but seven stocks in the 63- member index fell. The BM&FBovespa Small Cap index slipped 1.2 percent to 1,152.56 and ended the week little changed. The real weakened 0.6 percent to 1.7587 per dollar.