Petrobras Craters, Real Falls in Brazil’s Worst Rout in Months
- The real and Ibovespa index lead losses among major countries
- Oil giant down 21% as trading volume surges after CEO change
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The plunge in Brazilian markets Monday was unlike any the country has seen since the early days of the pandemic last year. Investors unloaded everything from state-run companies to bonds and the currency after President Jair Bolsonaro ousted the head of oil giant Petrobras, sparking worries of government meddling and a break with his administration’s market-friendly pledges.
The real was among the worst performers in the world even after the central bank stepped in to prop it up. Stocks also lagged major peers, falling 4.9%, the most since April, and sovereign dollar bonds led losses among emerging markets. Petrobras shares tumbled 22%, the most in almost a year, leading state-controlled companies lower.