Brazilian Stocks Slump After Lower House Backs Rousseff Impeachment

Brazilian stocks suffered a blow in Monday's trade after the country's lower house of congress voted to impeach embattled President Dilma Rousseff over the weekend. The Bovespa index lost 0.8% to 52,972.89, with only two stocks trading in positive territory. Brazil's Chamber of Deputies on Sunday voted 367-137 in favor of impeaching the leftist Brazilian leader, whose popularity has plunged recently as the country has slipped into recession. The upper house will now decide in coming days whether Rousseff will stand trial for allegedly violating Brazil's budget laws. This means she could be forced from office just months before the nation hosts the Olympic Games. "A quick resolution would certainly be preferable to a long, drawn out affair, but we note that a new government can do little to drag the economy out of the doldrums," said analysts at BBH in a note. "We suspect all of the good news (and then some) has already been priced in by the markets. While Brazilian assets should continue to participate in a wider EM rally, the days of massive outperformance are probably over for now," they added.