The Brazilian real weakened this Monday close to 1% once morest the dollar in the first spot operations, following the riots this sunday who starred the followers of former President Jair Bolsonaro.
With the fall, the real broke the appreciation streak that the currency of the South American giant submitted in the last three days. In parallel, Brazil stocks started the week lower. Meanwhile, futures contracts for the benchmark stock index Bovespa they were down more than 1%, with the opening of the São Paulo stock market.
Chaos in Brazil: Bolsonarists took over the headquarters of the Powers to call for a coup once morest Lula da Silva
“Considering the enormous coverage that the event had and the surprise we all had, the markets should react negativelybut this should be in the short term,” economists at JPMorgan (NYSE:JPM) said in a research note cited by Archyde.com.
“As the daily work of the Government resumes, attention must return to macro issues”, the experts pointed out. For its part, the Brazilian stock index in dollars (EWZ) registered losses of 1.8%.
The assets of Brazilian companies listed on Wall Street They also reacted with casualties once morest the green wave that lives this Monday in the New York square. Bradesco S.A. down 2.1%; It is followed by Vale SA with -1.5% and Petrobras it did close to -0.5%.
Yesterday Sunday, thousands of supporters of Bolsonaro they seized Congress, the Supreme Court and the Planalto Palaceheadquarters of the powers of Brasilia causing destruction, which led to international condemnation regarding the seriousness of the events.
Chaos in Brazil: the Supreme Court removed the governor of Brasilia from office
Although the beginning of the day registered these variations, closer to closingBrazilian stocks were trading flat.
Since Lula da Silva’s electoral victory, Bolsonaro’s followers have camped in front of different barracks of the Brazilian Armed Forces to demand a coup for “save Brazil” and depose the new president, winner of the October 2022 elections.
The extremists, mostly wearing yellow and green shirts and Brazilian flags, also attacked some vehicles of the Legislative Police, that provides security to Congress, and they destroyed protection barriers and, armed with sticks, confronted the agents who unsuccessfully tried to contain the entry of the demonstrators.
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