Brazil's Stocks and Currency Dive as the US Shifts Its Bailout Plan

by mazevedo | November 12, 2008 at 03:42 pm

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Stocks in emerging countries such as Brazil are currently a roller coaster ride for the strong hearted. If you believe the Dow, Nasdaq, and TSX are currently a roller coaster ride, take a look at stock markets in emerging countries and you'll see several very hardcore and scary roller coaster rides.

The Bovespa index .BVSP of the Sao Paulo stock exchange closed at 34,373.99, down nearly 7.8 percent from Tuesday's close and ending a three-session run of gains.

Shares of major miner Vale closed nearly 6.7 percent off as prices of copper touched three-year lows on expectations of lower demand for industrial metals.

State-run oil company Petrobras ended 13.7 percent down, leading the market lower even after reporting record profits in the third quarter late on Tuesday. Investors dumped the shares on concern over lower crude prices CLc1 and after the company cut its 2008 average daily output forecast.

The Brazilian currency the Real also feel sharply by almost 2.9% to 2.289 per dollar.