Brazil’s benchmark stock market index Ibovespa has slowed down after news broke that President Jair Bolsonaro is set to fire Health Minister Luiz Henrique Mandetta after days of rising tensions. Ibovespa started the day up 8 percent following worldwide optimism, as Italy and Spain showed signs that the Covid-19 outbreak could be slowing down and investors await a deal between Russia and Saudia Arabia sustaining oil prices.
On the local front, the news that the National Monetary Council has forbidden banks from distributing dividends — in an attempt to make them reinvest money in the economy — has also added to the relief and helped the bank sector to sustain Ibovespa’s high.
However, by 4.48 pm, the stock market index have moderated highs to 6 percent, after reaching 4.5 percent. At the same time, American indexes S&P500 and Dow Jones Industrial Average rose 7 percent.