Brazils Stock Market Precise Economic or Political

Brazils stock market […] precise economic or political events that contributed to either a significant rise or fall in the Brazilian stock market for the years of 2001 and 2002.

While the events of September 11, 2001 had an effect on global economies as a whole, Brazils economy in 2001 was already in a downward spiral by September. The Brazilian stock market ended up down 25% by the end of 2001, due mostly to a financial crisis in neighboring Argentina. The two countries economies were closely tied — too closely, and Brazil struggled to step away from Argentinas influence, so the value of their money fell, and the government cut spending, which helped aid the stock markets plunge.

In addition, an energy shortage in June 2001 caused rationing, which resulted in lower usage and consumer confidence, and the stock market suffered. Experts had expected the market to peak at 20,000 in 2001, but in only reached 18,000, and then headed downward. All of these events combined to crush the market in 2001.

If 2001 was bad for the Brazilian economy, 2002 was.