ANALYSIS: Latest political turmoil brings uncertainty to Brazil's metals markets

Brazilian stocks fell by more than 10% in opening trade on Thursday May 18, hitting circuit breaker limits, due to the emerging scandal involving the country's recently installed president, Michel Temer.

A circuit breaker is triggered when Brazil’s benchmark gauge, Ibovespa, falls 10% compared to the previous day's close. When the circuit breaker takes effect, all transactions are automatically interrupted for 30 minutes.
Stocks in Brazil’s major steel producers were all affected.
Usiminas preferred shares on the São Paulo stock exchange fell by 16.14% on Thursday, to 3.69 Reais ($1.19), while Gerdau preferred shares declined by 12.32%, to 8.97 Reais ($2.89), and CSN dropped by 12.57%, to 6.54 Reais ($2.11).
The Brazilian currency was also strongly affected by the political crisis.
The Real was trading at 3.38 Reais to $1 on Thursday, compared with 3.10 Reais to $1 the previous day, according to the reference exchange rate published by the country's central bank, Banco Central do Brasil.

Temer had been recorded in a conversation with...


Ana Paula Camargo

Felipe Peroni

Danielle Assalve

May 19, 2017

16:31 GMT

São Paulo