According to Financial Times:
“Its stock index is down almost 14 per cent this year. Bank share prices have lost 10-20 per cent, the construction sector is in an even worse state, and the shares of some industrial companies have dropped as much as 40 per cent.
Vale SA declined as second-quarter profit at the world’s biggest iron-ore producer and largest stock on the index missed analysts’ estimates while Gol Linhas Aereas Inteligentes SA tumbled after Brazil’s second-biggest airline by market value cut some of its 2011 forecasts and was downgraded at Credit Suisse Group SA and Banco BTG Pactual. “External elements are combining with domestic uncertainties to drive the Brazilian market right now,” Eric Conrads, who helps manage $12 billion in emerging market stocks at ING Investment Management in New York, said in a phone interview. “Earnings are also not coming in that great. Vale, Gol — you have a lot of misses, so that’s not helping.”