This special report comes to platinum subscribers as the Brazilian stock market faces a meltdown. We’re explaining what is going on—and what to expect this week.
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⚠️ Brazilian markets crash amid global freakout
As reporter Natália Scalzaretto explained in this morning’s Weekly Report, Saudi Arabia launched an oil price war against Russia, leading to a 25-percent crash in Brent crude prices. That—combined with continuing fears of a global recession caused by the Covid-19 outbreak—led investors across the globe to freak out. On Sunday, they made huge gambles against the U.S. stock market, putting their money in safe-haven investments such as U.S. Treasury bonds. The yield on the benchmark U.S. 10-year Treasury briefly touched an all-time low of 0.318 percent.
In Brazil, the Ibovespa stock market index dropped 10 percent in less than 30 minutes, triggering a circuit breaker, when trading is suspended for half an hour. After the intermission, stocks recovered some of the losses—but still hovered around -9 percent.
Currency. Meanwhile, the Brazilian Real is taking a nosedive, with the foreign exchange rate topping the USD 1 : BRL 4.79 mark. The movement forced the Central Bank to sell...