The San Pablo stock market falls forcefully by the fears of the political scene

The Brazil Stock Exchange work with heavy losses this Wednesday, amid concerns about the political environment, after legislators approved a initiative reducing the government's room for maneuver in budgetary matters.

Around 16:30 GMT, the benchmark Bovespa lost 2.5% before worries about political advice that threaten the governability of Jair Bolsonaro. For its part, the Really traded at 3.95 per dollar, the maximum value reached since October.

This Wednesday, the president had to cancel his public appearance in Sao Paulo to avoid crossing with a demonstration organized against him.

The lower house of Congress has approved an initiative giving it more power over the budget, which could complicate the president's attempts to approve controversial changes to the country's public pension system.

Although the vast majority of the budget can not be resolved unilaterally by the executive branch before, the measure – if confirmed by the Senate – would further reduce the chair's control over discretionary spending.

The gesture seemed to take the Bolsonaro government by surprise. Shortly before the vote, Onyx Lorenzoni, the president's chief of staff, badured that this option did not yet "worry" the executive.

In the previous session, Bovespa closed with a rise of 1.76 percent, to 95,306.82 points, thus closing defeat five days in which accumulated a drop of 6.3%, having exceeded at the beginning of last week the 100,000 points for the first time in history.

(With information from Reuters)