Brazil markets sink as S&P downgrades rating to junk

Downgrade reflects country's struggle to regain investor confidence as political turmoil drives growing government deficit

Brazil's financial markets have fallen after Standard & Poor's cut the country's sovereign rating to junk.

The drop from investment grade, which came sooner than many in the market had expected, reflected President Dilma Rousseff's struggle to regain investor confidence as political turmoil drives a growing government deficit in Latin America's largest economy.