17.08.201718:41:00UTC+00BRAZIL: Risk Aversion Increases After Barcelona Attack, Ibovespa Falls

Ibovespa, the benchmark stock index in Brazil, fell 0.9% Thursday to 67,976.79 points, constrained by increased risk aversion on the world stage after an attack in Barcelona this afternoon that killed 13 people and left more than 50 injured.

"The attack frightened everybody. It's been a long time since something was happening in Europe. It raises doubts about the next steps, if borders will be closed. In doubt, there is a search for safer assets. Gold rose today," said Jos? Costa, chief economist at Codepe Corretora.

Around 5:15 pm local time, a white van invaded the Ramblas, a tourist boardwalk located in the center of Barcelona, and ran over many people. The Islamic State claimed the attack.

According to Ignacio Crespo, an economist at Guia Investimentos, Ibovespa was already down due to a profit-taking movement.

"Risk aversion has gained momentum throughout the day, aided by the Barcelona attack," Crespo said.

The locally traded US dollar rose 1.01%, closing at R$ 3.1790, staying positive throughout the session while tracking the international movement. During the afternoon, the Barcelona attack increased risk aversion and led greenback to renew the intraday peaks.

For Friday, both economists predict that the Ibovespa will continue to fall, still tracking the tense and uncertain environment in the global geopolitical scenario.