Brazil's Stock Market Triggers Circuit Breaker for First Time in More Than Six Years

On October 26 local time, Brazil's financial markets experienced sharp volatility, with major stock indices falling significantly and the B3 exchange activating its circuit breaker mechanism. This is the first time the Brazilian stock market has triggered a circuit breaker since March 2020. Earlier that morning, the Ibovespa, Brazil's main stock index, fell 10% from the previous session's close, triggering the circuit breaker and suspending trading in stocks and other related assets for 30 minutes. After trading resumed, the index continued to decline, with intraday losses at one point exceeding 17%. Amid the market turmoil, Brazil's foreign exchange market also saw notable swings. The dollar-real exchange rate briefly rose to about 5.60 reais per dollar during the session. Meanwhile, Brazil announced the cancellation of auctions of fixed-rate and inflation-linked government bonds originally scheduled for this week. (CCTV News)