EU Meat Import Ban and Bolsonaro Report Shake Brazil

Brazil was surprised by a European Union ban on its meat imports, a move seen as a blow to the Mercosur agreement. At the same time, Brazilian markets were rattled by a news report linking Flavio Bolsonaro to the disgraced banker Daniel Vorcaro. The dollar rose back to 5 reais and the stock exchange fell amid the electoral scenario, U.S. inflation, and the report. The combined developments weighed on Brazilian financial markets.