Stock market in Sao Paulo opened 2.2% lower, after the credit rating of Brazil was reduced from BBB- to BB +. Standard & Poor's lowered the credit rating of Brazil to "junk."
The question is, what will come back investor confidence in the largest economy in Latin America.
"Everyone knew that this decline is inevitable, but the fact is that it came so quickly scares some people," said Andre Perfeito, chief economist at Gradual Investimentos in Sao Paulo. "People expect a plan from the government, but for now there is nothing to calm the market."
Jr Trader E. Dimitrov
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