The rating agency Fitch Ratings reported on Tuesday that it had revised the outlook for Brazil’s sovereign credit rating to “negative”, citing a deterioration in the country’s economic and fiscal scenario and renewed political uncertainty. Doubts about the duration and intensity of the spread of the coronavirus in Brazil were also raised.
The Brazilian stock market has gained 400,000 new investors in the past two months, said B3 CEO Gilson Finkelsztain. “This was unthinkable a few years ago, to increase the flow of investors to the stock exchange in a time of crisis”, pointed out the executive. The base of the Brazilian stock exchange now has 2.3 million accounts, said Finkelsztain.
Mercado Livre should maintain its plan to invest around $ 4 billion ($ 727 mm) in Brazil in 2020, since the rise in e-commerce caused by social isolation measures should offset the negative effects of coronavirus in its main market, said an executive at company.
Brazilian industrial production fell 9.1% in March, in comparison with February, as announced on Tuesday (5) by the Brazilian Institute of Geography and Statistics (IBGE), showing a strong impact of the coronavirus pandemic and isolation measures sector and economic activity. This is the worst result for March in the historical series of the survey, which started in 2002.
The Ibovespa closed higher on Tuesday, after two consecutive sessions of losses, with the second trading session of May on the São Paulo stock exchange supported by a more positive external news about treatments against Covid-19. The Ibovespa rose 1.22% to 79,839.25 and the financial volume totalled R$ 18.4 billion ($ 3.4 billion).