• Categories
  • Archives

Brazil Market Gets Back on Its Feet with a Roaring 15% Gain

Brazilian stock market After seven consecutive days of losses, which totaled more than 20%, the Bovespa, Brazil's stock exchange, came back with a roar, gaining 14.66% this Monday, October 13, the biggest jump since January 15, 1999 when Brazilian stocks surged 33.4% in a single day.

The market traded 5.24 billion reais (US$ 2,44 billion) during the Monday session and closed at 40,829 points. On Friday the Ibovespa fell 3.97% accumulating 44% in losses for the year.

Banks shares led the way and none of the 66 stocks that make up the Ibovespa (the Bovespa index) ended up in the red. Itaú and Unibanco banks saw their stocks up by over 20%. Blue chips Petrobras, the state-controlled oil multinational, and mining company Vale went up 12% and 13%, respectively.

Brazil got the buying fever as the rest of the world after several countries announced measures to inject more capital in their financial system. Europe alone promised to use over US$ 2 trillion to deal with the problem, ten times as much as the US with an economy similar to the whole of Europe is willing to bring in.

In the US, the Dow Jones went up 11.08%, in London the FTSE-100 advanced 8.26%, in Paris the CAC-40 climbed 11.18% while Frankfurt's DAX moved 11.40% in positive territory.

The dollar, which had dramatically zoomed up last week tumbled 7.74% on Monday, closing at 2.14 reais per dollar. This was the biggest spill for the greenback since August 2002. The dollar had surpassed 2.30 reais last week.

The Brazilian Central Bank promised Monday that it is going to inject over 100 billion reais (US$ 47 billion) in the market through changes in the banks compulsory deposits rules.

Trade Surplus

The Brazilian trade surplus, i.e. positive result for exports minus imports, reached US$ 411 million in the second week of October and US$ 540 million so far this month.

In the accumulated result for the year, the trade surplus remains lower than in the same period of 2007: US$ 20.196 billion as against US$ 32,487 billion. The reduction is the result of imports growing at a faster rate than exports.

In October, exports totaled US$ 6.848 billion and imports, US$ 6.308 billion. In the accumulated result for the year until now, exports total US$ 157.716 billion and imports, US$ 137.520 billion.

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

US Keeps by Far Title of Brazil’s Number 1 Exporter and Importer of Capital Goods

Brazilian exports of capital goods yielded US$ 8.6 billion in 2005, performance 25% above ...

Suppose Lula Is Impeached. It Won’t Be a Nice Picture in Brazil.

What everybody in Brazil is talking about, this week, is not  the explanation given ...

Google Gets Fined in Brazil. Offense: Not Removing Abusive Material

Brazilian judge Alexandre Zanetti Stauber has sentenced Google of Brazil to pay a fine ...

Brazilian President Lula Repeats He’s No Chavez and Will Get Out in 2011

Once again the president of Brazil, Luiz Inácio Lula da Silva. has ruled out ...

Brazil Proud to Go from IMF Borrower to IMF Lender

Brazilian President Luiz Inácio Lula da Silva said he wants to be the first ...

Terror and Development, According to Brazil’s Cardoso

At the 2004 Annual Meetings of the American Sociological Association in San Francisco, former ...

Election Dysfunction

Only four months before the presidential elections in Brazil, mega investor George Soros told ...

3.5 Dead for 1 Injured: Bonus for Cops in Brazil Doubles Number of Killed Suspects

The growing number of police killings of suspected criminals in Rio de Janeiro's war ...

After 9% Growth in 2007, Construction in Brazil to Expand 10% This Year

Brazil's civil construction sector grew 9% last year and should grow another 10% this ...

In Brazil, a Husband Can Never Be a Rapist

A study entitled "The Brazilian Women in the Public and Private Spheres" drawn up ...