• Categories
  • Archives

78% Up in 2009: China and Commodities Surge Boost Brazil Market

Brazil's Bovespa The Brazilian stock market, Bovespa, went up, this Thursday, October 15, for the fifth consecutive day, extending recent rallies and ending at fresh highs not seen in more than a year. The main São Paulo stocks index ended 0.76% higher at a 16-month high of 66,703 points. The financial volume was 6.34 billion reais (US$ 3.73 billion).

The index grew 4.11% this week, 8,43% this month, and 77.64% this year. The main contributors to this rally are Petrobras PN (up 1.24% to 36.60 reais), Vale PNA (up 0.69%, to 40.69 reais).

For a few minutes the dollar went down to 1.69 Brazilian reais. Foreign inflow of capital and the perspective of the new IPOs (Initial Public Offerings) have depressed exchanges since September 3 2008.
Brazil's real closed at 1.703 reais to the dollar, a 1.38% decline.

On Wednesday, traders noted the local stocks index began the session moving higher following an enthusiastic reaction to upbeat earnings reports abroad, where heavyweight bank and technology sector players JPMorgan Chase & Co. and Intel Corp. posted encouraging third-quarter results. Furthermore Citigroup raised its year end target for Brazil Bovespa's index to 70.000

Highly sensitive to metals and food exports, rising international commodities prices continued to provide support for major local players in the Brazilian market.

The market was also boosted by the announcement from Vale Doce SA, the world's largest iron ore exporter that it had reached an agreement with the state of Minas Gerais. It also was revealed that they are in negotiations with the Chinese to sell them iron.

The agreement unveils projects to develop and expand its production capacity in the Minas Gerais state in order to meet the growing global iron ore demand. These projects are Apolo, Conceição Itabiritos and Vargem Grande, whose investments are estimated at approximately 9.5 billion reais, approximately 5.6 billion reais.

The Dow Jones Industrial Average on Wednesday topped the 10,000 mark for the first time in a year. World markets were boosted by the news that US bank JP Morgan Chase reported a better-than-expected profit in the July-to-September quarter.  The Dow closed 0.47% up at 10,062.

Bzz/MP

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Your email address will not be published.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

Heir to IBM PC Makes Brazil’s Footballer Ronaldinho Its Ambassador

Lenovo Group Limited announced a cooperation with FC Barcelona and its superstar, Brazilian-born Ronaldo ...

Let’s Hear It for Jobim.

Francis Hime’s Sinfonia do Rio de Janeiro de São Sebastião DVD celebrates the Cidade ...

Brazil’s Ornamental Pineapple Finds Admirers and Buyers in Europe

So as to win the European market with exotic ornamental pineapple, six floriculturists from ...

First Woman to Open UN General Assembly, Brazil President to Defend Palestine’s Statehood

Dilma Rousseff, the president of Brazil, will become on Wednesday the first woman ever ...

Lucky Brazilians! They Have Six Obamas to Choose From

Barack Obama is running for mayor in Belford Roxo, a little town close to ...

Being and Becoming

Mario Quintana is probably the greatest poet in (at least) the history of his ...

Brazil’s Trade Surplus Falls 45% for the Year

The Brazilian balance of trade (exports minus imports) recorded a surplus of US$ 2.719 ...

After a Year of Growth São Paulo’s Industrial Job Offers Go Down

São Paulo’s industrial sector has created 100,000 jobs since January, an increase of 3.87%, ...

Brazil’s Petrobras Spends Close to US$ 300 Million in Social Projects

Petrobras, Brazil's state-controlled oil and gas multinational, provided sponsorship and support for 2,300 projects ...

Signs of Fiscal Austerity Help Boost Brazil’s Stocks

Brazilian and Latin American stocks in general gained ground, as investors bought discounted shares ...