Brazil Stock Market Plunges after Temer Scandal Threatens Reforms

  • As per reports, investors’ reaction to corruption allegations against Brazilian President Michel Temer led Brazil's Bovespa stock market to halt.

    As the trading started, stocks plunged more than 10%, which ultimately prompted circuit breakers to kick in and stop dealings.

    Reports also say that President Temer was forced to deny a media report that he had paid off a witness in a corruption scandal. However, the Supreme Court has asked to start an investigation into the allegations.

    Temer on Thursday said he will not resign as he denied all the allegations. Traders were reportedly disappointed with Temer’s remarks as they had hoped for a fast resolution to the political crisis.