• Categories
  • Archives

Standard & Poor Sees a ‘Solid’ 2005 for Brazil

Brazilian stocks rose, ahead of what are expected to be solid fourth-quarter earnings announcements in the coming weeks. Still, investors remained somewhat cautious in anticipation of the release of the minutes from the Brazilian central bank’s most recent monetary policy meeting.

Brazil’s benchmark Bovespa Index strengthened 379.35 points, or 1.59%. Brazilian stocks strengthened, amid gains in the power and metals sectors.


Investors are looking cautiously ahead to minutes from the Brazilian central bank’s latest monetary policy meeting due later in the week. The bank is expected to make hawkish comments regarding inflation and interest rates after tightening monetary policy in January for the fifth straight month.


Still, investors are awaiting fourth-quarter earnings reports in the coming weeks that are anticipated to be generally positive. Brazil’s economy leapt in the second half of 2004, and local firms are now reaping the benefits of that expansion.


Additionally, Brazilian equities were supported by a Standard & Poor’s report that said the country’s macroeconomic prospects for 2005 look “solid.”


Shares of Brazilian electric power utility Copel soared, after the firm announced plans to raise prices by an average of 5% from February 1. The price increase reduces some of the discount awarded to customers that pay their bills on time.


Also, CVRD continued to rise, following its acknowledgement last week that the mining giant is seeking a price hike from clients of up to 90% for iron ore this year.


Iron ore prices are negotiated every year between major producers and their foremost steelmaking clients. Strong Chinese demand has lifted iron ore prices, which surged nearly 19% in 2004 after a 10% rise in 2003.


Thomson Financial Corporate Group
www.thomsonfinancial.com


PRNewswire

Tags:

  • Show Comments (1)

  • Guest

    baba
    awsome thanks for the information DUDE

Your email address will not be published.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

Brazil: It Ends the UNCTAD of the Discontent

For the Secretary of Environment and Development from the state of Amazonas, in Brazil, ...

Catch Brazil’s WSF Forum on Satellite

Starting today, the 2005 World Social Forum will transmit (clean) international audio and video ...

Gol Gets Its 100th Aircraft, a Boeing 737 Especially Designed for Brazil

With the delivery of its new Boeing, Brazilian Airline Gol and its subsidiary Varig ...

The U.S. Amasses Its Troops and Mercenaries at Brazil’s Doors

It would be easy to make fun of President Bush’s recent fiasco at the ...

Royal Road: A Walk Into Brazil’s Infancy

Glenn Cheney spent two months walking alone on the Estrada Real in Minas Gerais, ...

Brazil Police Give Green Light: American Pilots Can Go Back Home

Even if considered suspect by the Brazilian justice Joe Lepore and Jan Paladino, the ...

Brazil’s Higher Court Gives Green Light to Amazon’s Hydroelectric Plant

A higher court in Brazil lifted an order that suspended construction of the massive ...

Extreme Security Surrounds Brazil’s Ex-Chief of Staff Testimony on Vote-Buying

The security section of Brazil’s Chamber of Deputies has made special arrangements for today’s ...

Brazil’s Industry Federation Calls 2004 Spectacular

“Spectacular,” was the way the president of the Foreign Relations Council at the São ...

Brazil Among World’s Cheapest Places to Live In

In spite of the recent valorization of the real compared to the dollar, São ...