In Brazil Investors Snub Oil Price Hike

Brazilian and Latin American markets mostly advanced on the day, although Argentina moved lower. Investors largely ignored another advance in crude oil, which put prices securely above US$ 60 a barrel.

Traders are awaiting the U.S. FOMC meeting on interest rates later this week.


Brazil’s benchmark Bovespa Index jumped 308.86 points, or 1.24%, while Mexico’s benchmark Bolsa Index advanced 155.45 points, or 1.17%. Argentina’s Merval Index declined 23.36 points, or 1.62%.


Brazilian shares added to Friday’s positive momentum, after spending most of last week in the red due to political and oil concerns.


Today, investors mostly ignored fresh revelations over the weekend regarding the country’s political scandal that involves the governing Workers Party.


Brazilian magazine Isto í‰ reported that about 20 million reais (US$ 8.4 million) were withdrawn through companies owned by Marcos Valério, an associate of the Workers Party. The withdrawals were made during the alleged period bribery is said to have taken place.


In economic reports, the central bank reported a consolidated public-sector primary budget surplus of 6.314 billion reais in May, lifting the 12-month primary budget surplus to 93.17 billion reais, or 5.02% of gross domestic product (GDP).


Still, the nominal monthly deficit, which includes interest payments on debt, was 7.4 billion reais in May, compared with a surplus of 3.06 billion reais in April and a deficit of 4.84 billion reais in the year-earlier period.


Separately, the central bank’s weekly market survey continued to show a decline in domestic inflation and growth rates for 2005.


Turning to corporate reports, state-run oil firm Petrobras announced that it does not intend to raise its domestic gasoline and diesel prices in the short term, despite the recent surge in global oil prices.


Petrochemicals firm Braskem said that it, along with Venezuela’s state- owned Pequiven, may build a petrochemicals plant in Venezuela that may cost up to US$ 250 million and produce about 400,000 tons of polypropylene a year.


Elsewhere, Cemig expects to raise 2.22 billion reais in bank loans to roll over debts. The electric power utility said the move could warrant a better credit rating, which in turn could reduce the cost of borrowing.


Mexican shares snapped a four-session losing streak and posted gains. In economic headlines, the National Statistics Institute, or INEGI, reported that its global indicator of economic activity, or IGAE, grew 4.8% in April compared to a year earlier and was down 0.03% from March.


In corporate research notes, a major investment bank resumed coverage of bottler Femsa with an “overweight” rating.


Elsewhere, broadcaster TV Azteca and other firms controlled by Ricardo Salinas Pliego will likely see the end to their ADRs being traded on July 18. Recently, the firms decided to delist from the New York Stock Exchange due to the high costs.


Argentine receipts bucked the broader market upturn and posted declines. Chief of Cabinet Alberto Fernandez rejected the International Monetary Fund’s recommendation that Argentina raise its fiscal surplus.


Meanwhile, the national statistics agency, or INDEC, said that domestic construction activity grew a seasonally adjusted 2.3% in May from April and advanced 8.9% from the corresponding period a year ago.


Thomson Financial Corporate Group – www.thomsonfinancial.com

Tags:

You May Also Like

The Brazilians and Their Intriguing Movies Are Back in New York

From July 17 through 31, New York's Museum of Modern Art (MoMA) will be ...

This Mitsubishi is 100% Brazilian

Mitsubishi Motors Brazil, different from most carmakers installed in the country, is not a ...

Cathedral of Brasília, in the Brazil's Capital

Government, Industry, Unions, Media, Church, They’re All Bankrupt in Brazil

You can’t deny it: in Brazil public authority is melting like ice cream under ...

Brazil and Mercosur Snub the US and Back Venezuela for UN Seat

Mercosur full members expressed on Friday, July 21, support for Venezuela to occupy the ...

More Jobs in Brazil, But Not as Many as in the Early 90s

From 2003 to 2004, the Brazilian labor market absorbed 2.7 million new workers, an ...

An Old Classic of Portuguese Learning Gets a Welcome Makeover

As a retired instructor of Brazilian Portuguese, I was pleased to receive last week ...

Brazil’s GDP Growth on Target

The Brazilian government’s primary surplus from January to July reached US$ 12.853 billion (37.980 billion ...

Green Fuel May Save Negotiations Between Brazil and G-20 at WTO

CNN creator, Ted Turner, says he has a secret ingredient for rescuing suspended global ...

Santos-Dumont's 14 Bis flies over Paris

Brazil’s Father of Aviation Birds Ran All on Coffee

Birds from Paris were already getting used to dividing the air that used to ...

Fire Destroys Thousands of Carnaval Costumes in Rio Causing US$ 4.2 Million in Losses

At least four warehouses, an escola de samba (samba club) and a Carnaval museum ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`