Ibovespa edges lower below 186,000 on political uncertainty
Brazil’s Ibovespa edged lower on Thursday and traded below 186,000 as political uncertainty weighed on the country’s economic outlook. The dispute between Supreme Court justices Alexandre de Moraes and André Mendonça escalated into an institutional crisis.
The Ibovespa edged lower to trade below 186000 on Thursday as political uncertainty continued to weigh on Brazil’s economic outlook. The backdrop included a dispute between Supreme Court justices Alexandre de Moraes and André Mendonça, which has escalated into an institutional crisis and centers on failed lender Banco Master, under investigation in a bank fraud case, plus Mendonça’s disclosure of private messages allegedly sent to Moraes. The public clash has raised concerns about the court’s credibility and added to uncertainty ahead of October’s presidential election.
In markets, oil extended its rally after the biggest wave of attacks on shipping in the Strait of Hormuz by Washington and Tehran on Wednesday, while global yields rose on fears of prolonged inflation. 5% and BB Seguridade losing nearly 2%. 5% on the oil rally.