BM&FBOVESPA: Index falls on recession fears

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SÃO PAULO, 11/19/08 - Volatility prevailed in global stock exchanges today, as recession fears led the BM&FBovespa index to close down for the fourth consecutive session. The Brazilian exchange lost 2.02% to 33,404 points. Besides, the local holiday in São Paulo (Black Awareness) on November 20 also stimulated investors to change their positions. The trading volume continued low, closing at R$2.89 billion.

The preoccupations with the U.S. automotive sector left investors apprehensive. Last Tuesday, executives at three large carmakers went to the Congress to say that their companies are on the verge of collapse and requested the approval of an emergency package for the sector worth US$25 million, of which US$7 billion would go to Chrysler, US$10 billion to US$12 billion to General Motors and US$7 billion to US$8 billion to Ford.

The U.S. Consumer Price Index (CPI) fell 1% last month, after having remained unchanged in September.

The minute of the meeting held in October 29 by the Federal Open Market Committee (Fomc) of the U.S. Federal Reserve (Fed) indicates that the American economy will decline until the middle of 2009.

(Vanessa Correia/cferreira - InvestNews)