This page has been archived and commenting is disabled.

Brazilian Stocks Plunge 6% To 7-Month Lows After Rousseff Win

Submitted by Tyler Durden on 10/27/2014 08:29 -0400

Just as we warned last night was indicated by the Japanese market's Brazil ETFs, so the IBOVESPA has opened down over 6% this morning on very heavy volume following the 'disappointing for the bulls' electionvictory of Dilma Rousseff. Despite her associations with Petrobras (which may have suggested it bounced), the favorite Jim Chanos short is being crushed, down 14% at the open. The Real is tumbling too, breaking above 2.54 to its weakest against the USD since Dec 2008.

Brazilian stocks...

and The real is tumbling...

Charts: Bloomberg

- advertisements -

Mon, 10/27/2014 - 08:36 | 5381603 kowalli

banksters not happy?

Mon, 10/27/2014 - 08:41 | 5381613 Headbanger

Just think what a Hitlery election would do here!

Long anything that goes bang when I pull the trigger.

Mon, 10/27/2014 - 08:42 | 5381621 kowalli

I hope there won't any elections

Mon, 10/27/2014 - 08:57 | 5381673 GetZeeGold

I think we're finally dialed in.....don't touch anything.

Mon, 10/27/2014 - 09:45 | 5381855 sylviasays

President Dilma Rousseff lashed out at Banco Santander Brasil SA for saying in a market note that her reelection would negatively impact the economy. Rousseff quickly accused Santander of “electoral terrorism.” Santander formally apologized and fired its analyst and other employees involved in the note’s publication. Brazilian and foreign banks, brokerages, and funds were no longer commenting publicly about politics for fear of government retaliation.

http://www.monitorglobaloutlook.com/Insights/2014/08/Brazil-s-Rousseff-b...

It appears that Dilma Rousseff and her predecessor Luiz Inacio Lula da Silva knew about a kickbacks scheme at state owned oil giant Petrobras? The deterioration of Brazil’s state owned enterprises like Petrobas has continued on Dilma Rousseff's watch. Petrobras has been inundated with allegations of corruption. Dilma Rousseff was on the Board of Directors when it signed a deal to spend over a billion dollars on a Texas oil refinery worth just around $50 million two years prior. The company has lost 51% of its market cap in the last three years and is now valued at $75.5 billion.

http://www.forbes.com/sites/kenrapoza/2014/03/23/petrobras-puts-brazil-p...

http://www.ft.com/cms/s/0/015f0638-58c3-11e4-942f-00144feab7de.html#axzz...

http://news.yahoo.com/rousseff-knew-petrobras-kickbacks-report-225218683...

Rousseff is the fat Marxist dictatorial pig candidate... the middle class of Brazil should declare a national mouning after the red pig and her cronies are still at the trough feeding...

Mon, 10/27/2014 - 09:54 | 5381886 HenryHall

So there is to be no Ukraine style civil war is in Brasil's future.

It must be a huge disappointment to the banks and a huge relief to the BRICS organization.

Mon, 10/27/2014 - 10:02 | 5381907 sylviasays

The fat Marxist pig and her cronies are now back to stealing the wealth of the country before everything collapses.

Mon, 10/27/2014 - 08:47 | 5381633 Notsobadwlad

Anyone want to take bets on whether the people have any choice besides Hitlery and Jeb in the general election?

The US is Sooooooooo fucked.

Mon, 10/27/2014 - 08:55 | 5381664 GetZeeGold

Hillary/Jeb = game over.

Mon, 10/27/2014 - 08:55 | 5381667 kowalli

I think a document appointing Hitlery as a president already printed and signed

Mon, 10/27/2014 - 11:03 | 5382179 Emergency Ward

Hillary and Jeb will surprise everyone and run unopposed on the same ticket.

Mon, 10/27/2014 - 08:37 | 5381605 Dr. Engali

Ouch, that's going to leave a mark.

Mon, 10/27/2014 - 08:38 | 5381607 LULZBank

What the fuck is the problem now?

Mon, 10/27/2014 - 08:39 | 5381612 kowalli

western puppet lost election - they are not happy,so they kill currency

Mon, 10/27/2014 - 08:44 | 5381627 Notsobadwlad

And apparently they could not just rig the election like they do in the US.

Mon, 10/27/2014 - 08:55 | 5381659 kowalli

rig what? XD

Mon, 10/27/2014 - 10:06 | 5381889 sylviasays

The problem is that the fat Marxist dictatorial pig candidate and her cronies are still at the trough feeding. No doubt they'll soon have food rationing for the common masses like Marxist dictator Maduro has done in Venezuela?

http://wlrn.org/post/how-bad-are-things-venezuela-its-rationing-food-and...

http://online.wsj.com/articles/despite-riches-venezuela-starts-food-rati...

Mon, 10/27/2014 - 08:45 | 5381626 Notsobadwlad

Ask yourself: "Who controls the pricing of stocks and FX values?" Is there really a free market?

Mon, 10/27/2014 - 09:14 | 5381635 Dr. Engali

Uhhhhmmmmm, no. There is no free market, and there never has been.

Mon, 10/27/2014 - 08:48 | 5381639 Bumbu Sauce