SAO PAULO (Reuters) – Brazil’s currency on Monday weakened roughly 1% against the dollar in early spot trading after supporters of former President Jair Bolsonaro stormed the country’s capital a day earlier.
Future contracts for the Bovespa benchmark stock index were down more than 1%, with the Sao Paulo stock market set to open at 10 a.m. (1300 GMT).
“Considering the enormous coverage the event got and the surprise we all had, markets should react negatively, but this should be short term,” economists at JPMorgan said in a research note. “As day-to day government work resumes, attention should go back to the macro issues that have been top of mind.”
(Reporting by Luana Maria Benedito, Paula Arend Laier and Gabriel Araujo; Editing by Brad Haynes)