Brazilian stocks fell for a second day on Wednesday, led by
shares of struggling oil producer OGX Petróleo e Gas
Participações SA, amid increasing concerns over
budget and debt negotiations in the United States.
The benchmark Ibovespa index fell 0.3 percent to
54,257.59, the lowest level since Sept. 20. Worries over a
potential U.S. government shutdown, and mixed signals on the
immediate future of the monetary policy that has given support
to equities, kept foreign investors in Brazil on edge.
OGX fell after the company said in a securities
filing that it is still analyzing how to strengthen its capital
structure. Bonds of the company are currently trading at around
18 cents on the dollar - a level that usually points to an
increasing risk of default. OGX has denied repeatedly that it is
restructuring its debt.