Stocks Up: In One Day Brazil Wipes Out All July Losses

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Brazilian real In a single trading session the São Paulo Stock exchange, the Bovespa, practically recuperated all the loses accumulated during this month. The Ibovespa, Bovespa's main index, went up 4.96 this July 15, closing the day at 51,296 points with a 6.45 billion Brazilian reais (US$ 3.33 billion) being traded.

While stocks had fallen by 5.04% during the month of July, this decline has now been reduced to 0.38%. The jump in stocks this Wednesday was the best since May 18.

The good performance is in part due to higher global prices for commodities. Among the companies whose stock value went up were Petrobras (3.95%), Vale (8.33%), Itaú Unibanco (4.17%), and Bradesco (4.31).

The chairman of the Central Bank of Brazil, Henrique Meirelles, said July 14 that the Brazilian interest rate is set in such a way that it suits the market conditions.

"We are taking that into account, and aiming at stability and predictability. I believe that the real interest rate may continue to drop," he asserted.

Meirelles said that Brazil is going to leave the crisis behind faster than the other economies. According to him, rising retail sales indicate that.

"We are gaining strength. Investment is increasing and the Brazilian industry is more competitive now," he claimed.

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