Itau Unibanco (ITUB) Stock Down as Brazil Economy Expected to Shrink
NEW YORK (TheStreet) --Shares of Itau Unibanco (ITUB) - Get Report are slipping by 3.47% to $7.23 in early afternoon trading on Monday, as the Organization for Economic Cooperation and Development lowers its forecast for Brazil's economy.
As a result, some U.S. traded, Brazil-based stocks are taking a hit today.
OEDC is expecting Brazil's economy, which is currently in the midst of one of its worst recessions, to decline by 3.1% this year and 1.2% in 2016, the Financial Times reports.
This compared to the organizations' previous expectations for a reduction of 2.8% this year and 0.7% for 2016.
Itau Unibanco is a Sao Paulo-based holding company that provides a range of financial products and services to individual and corporate clients in Brazil.
Another factor impacting Brazilian stocks today is the 0.8% decline in the real to 3.7986 per dollar in Sao Paulo this afternoon. The currency fell as economists in a central bank survey said the recession is getting worse, Bloomberg reports.
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