Goldman Sachs: Extreme market moves may occur today, with USD/BRL surging 10% and Brazil stocks dropping 15%

Jinse Finance reported that on October 26, Goldman Sachs stated that the Brazilian market may experience extreme movements today, including a 10% increase in the USD/BRL exchange rate, a 200 basis point rise in long-term government bond yields, a 30 to 40 basis point widening in credit spreads, and a 15% drop in the stock market. Goldman Sachs expects that the Brazilian market’s circuit breaker mechanism may be triggered soon, at which point trading will mainly be conducted in an order-driven manner and be subject to circuit breaker restrictions.