Brazil’s real led losses in Latin America and stocks fluctuated after data showing Latin America’s largest economy entered a recession added to concern corporate earnings will falter.
The real lost 0.4 percent to 3.5670 per dollar at 11:50 a.m. in Sao Paulo, extending its weekly slide to 1.9 percent. The Ibovespa fell 0.3 percent to 47,577.93, set for the worst monthly tumble this year. The gauge is still up 4 percent since Friday.
The currency traded near a 12-year low while the Ibovespa extended its August slide as the national statistics agency reported a back-to-back quarterly contraction in gross domestic product. The 1.9 percent decline in the three months through June 30 was the biggest in more than six years and trailed economists’ projections. A surge in commodity shares including Vale SA helped trim a slump in the stock gauge, led by meat producer JBS SA.
Traders are turning bearish on Brazilian markets as PresidentDilma Rousseff struggles to boost growth amid the highest interest rates in nine years and a sweeping graft scandal. More than half of the companies in the Ibovespa reported second-quarter revenue that trailed analysts’ estimates, according to data compiled by Bloomberg.
Brazil Energy Insight 
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