International financial markets yesterday showed strong turmoil in the face of the biggest fears of a global recession, after weak economic data in Germany and China mainly. This also happened in Brazil.
The Ibovespa, the main index of the Brazilian stock exchange, was affected: it fell by 2.94% to 100,258.01 points. The high of the US currency is the largest since March 27, reaching R$ 4.
Among the main casualties, Petrobras (BOV: PETR4) and Vale (BOV: VALE3) retreated above 2%. Kroton (BOV: KROT3) led declines by over 7% after the company's quarterly results were below expectations, according to Reuters.
Brazil should already be at the rate of stronger economic growth in order to face this scenario of a possible global recession. In fact, Brazilian families are not consuming because unemployment has risen. In addition, debt levels in Brazil are very high.
Despite these and several other negative indications about the Brazilian economy, Goldman Sachs said in a report that the bank is "more optimistic about the Brazilian stock market, followed by local exchange and interest rates and a little less positive about sovereign credit".
After assessing the performance of Brazilian assets in recent weeks, which were particularly bad for emerging markets, Goldman Sachs assessed that Brazil is becoming a more “defensive” market.
According to the bank, the contagion of the crisis in Argentina occurs more to a lesser degree, as a result of which Goldman Sachs believes that Brazil, which has resisted a scenario of slower global growth and problems in Argentina, should present assets with better performance than the other than your peers.
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