“The market is a bit lost,” Gustavo Mendonca, an economist with Saga Capital, said in a Reuters article. “Without any further information on the outlook for the Fed’s stimulus program, we are seeing this volatility.”
Brazilian equities are moving into bear market territory, with the benchmark Ibovespa index down about 21% since this year’s high, Bloomberg reports.
“There’s an indiscriminate selling,” Paul Christopher, the St. Louis-based chief international strategist at Wells Fargo Advisors, said in the Bloomberg article. “This is a reaction to the excessive optimism created around the Bank of Japan’s announcement and how long the Fed will keep quantitative easing in place.”
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Max Chen contributed to this article.