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2015.01.1923:06:02UTC+00Brazilian stocks plunge on reduced economic growth forecast

Brazilian stocks declined with the Ibovespa losing the most in two weeks after growth projections were cut by economists. CPFL Energia SA was the biggest laggard, leading the utilities sector down.

The Ibovespa Index shed 2.6% to 48,758.01 at the end of trading in Sao Paulo. Among the gauge’s 68 stocks, 64 declined. The nation’s currency weakened by 1.4% to match the dollar at 2.6582 real per dollar.

Brazil’s economic forecast for the year 2015 was pared by economists. From a 0.4% growth projection, economists are now only at 0.38%. Along with the reduction in growth projections, economists also increased inflation estimates for the current year. Inflation forecast is now at 6.7% from the original 6.6%.

CPFL plummeted by 7.3% while Lojas Americanas shed 4.7%. Vale SA inched down by 0.7%. 

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