New coronavirus worries push down Brazilian ETF shares in U.S.

SAO PAULO, Feb 25 (Reuters) - Worries about the spread of coronavirus and its potential impact on the global economy pushed down the index for Brazilian shares in exchange-traded funds on the New York stock market on Tuesday, while the Sao Paulo bourse was closed for Carnival.

Around 5:20 p.m. local time (2020 GMT), iShares MSCI Brazil , an index fund, or ETF, for Brazilian stocks traded in New York, slipped 1.2% to 39.84 points, while the Dow Jones Brazil Titans 20 ADR, which combines the main Brazilian ADRs, fell 2% to 20,711.20 points.

On Monday, iShares MSCI Brazil dropped 4.99% in closing deals, while Dow Jones Brazil Titans lost 4.81%.

The Sao Paulo stock exchange was closed on Monday as well as Tuesday for Brazil’s Carnival holiday. Trading on the Sao Paulo exchange, run by B3, is expected to resume at 1 p.m. local time (1600 GMT) on Wednesday.

“The indices are following international stock exchanges with a global aversion to risk and the search for so-called safe ports,” said Ricardo Campos, chief executive and chief investment officer Reach Capital.

Investors are focused on the potential impact of the virus as it spread to new countries, including Spain and Germany. The negative tone was accentuated after the United States Centers for Disease Control and Prevention (CDC) warned that Americans should start preparing for the spread of the virus in the United States.

“In addition to China, a major consumer of commodities exported by Brazil, the coronavirus spreads to other countries, with real risks of threat to the whole of Europe,” Campos said.

“The global economy is expected to decelerate even more this year, which would be the year of the resumption of greater growth for Brazil,” he added in a telephone interview. (Reporting by Paula Arendt; editing by Jonathan Oatis)