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:

Ads

You May Also Like

World of High Decoration Gathers in Brazil for Abimad Fair

Abimad, the Brazilian High-End Furniture Manufacturers Association  and Apex-Brazil, the Brazilian Export and Investment ...

Three Days of Rains Have Already Killed Over 50 in Rio

In Rio, Brazil, mudslides caused by heavy rains have killed at least 30 people ...

Minimum Mandatory Schooling in Brazil Rises to 9 Years

Brazilian President Luiz Inácio Lula da Silva will sign into law a bill raising ...

Brazil Congratulates Haiti for Elections Well Done

The Brazilian government sent a message, Wednesday, February 8, congratulating the Haitian people on ...

Brazil Wants to Reduce Its Trade Deficit with Algeria by Building Houses

Brazil’s Minister of Development, Industry and External Trade, Luiz Fernando Furlan, said today that ...

With Seeds and Stones, Brazilian Shoes Sweep Women Off Their Feet

The luxury shoes designed by Jorge Guimarães are already on the feet of Arab ...

Brazil Has a Great Debt to Blacks

Zumbi of Palmares, was the hero of black resistance, the martyr for the dignity ...

White Lie: Poverty in Brazil Has No Color

A little more than a century after the abolition of black slavery in the ...

Opposition Calls Brazil’s Finance Minister Defense of His Reputation, ‘Stress Relief’

Brazilian markets reacted positively to Finance Minister Antonio Palocci strong denial of any involvement ...

With 2 Fairs, in Germany and the US, Brazil Organics Are Starting 2010 Well

The main markets for Brazilian organic products abroad are Germany, France, the Netherlands, the ...