On Brazil’s financial markets it is almost as if the global crisis never happened. On September 16, a day after the anniversary of the collapse of Lehman Brothers, trading volume on the equities section of the BM&FBovespa hit an all-time high. Stock prices and the currency are back to pre-crisis levels.
Foreign investors, who sold heavily on Brazil’s highly liquid markets as the credit crisis unfolded, are heading back. Between June 2008 and January this year they took more than R$26bn from the BM&FBovespa’s equities segment. Since February, they have returned more than R$15bn.
