Brazil’s Financial Stocks Drop on Magnitsky Sanctions Fears

Shares of Brazilian financial companies tumbled amid growing fears about the impacts from the US Magnitsky law sanctions on local lenders.

Banco do Brasil SA shares closed down 6% on Tuesday afternoon in Sao Paulo, while Banco BTG Pactual SA stock had fallen 3.5%, and Banco Bradesco SA’s preferred shares declined 3.4%. In New York, XP Inc. ended the day 8.6% lower after the brokerage announced second-quarter results, and Nu Holdings Ltd. closed down 1.6%.