From the Financial Times:

Analysts say Brazil is paying the price for having one of the most liquid markets among the large emerging economies and for the dominance of commodities companies among its main stocks. Petrobras, the country’s state-run oil producer, and Vale, the world’s largest iron ore exporter, are seen as proxies for global growth.
“Brazil tends to get whacked around on days or timeframes when people are adjusting their expectations for a US recession, if not a more severe slowdown in growth globally,” says Bret Rosen, senior credit strategist for Latin America at Standard Chartered in New York.
This (bearishness in Brazil stocks) was because of concern over government meddling in state-run companies, such as Petrobras and Vale, rising inflation and interest rates, and concern over a potential slowdown in consumer credit.

Full article here

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