• Categories
  • Archives

London Blasts Shake Brazilian Market

Latin American shares ended mixed, recovering from losses at the onset of trading. A series of deadly blasts, believed to be the work of terrorists, hit London’s transportation system, negatively impacting global market activity earlier in the session.

Brazil witnessed a volatile session, weaving in and out of negative territory and ultimately finishing lower. On the upside, Mexican shares jumped higher on encouraging inflation data and ahead of the highly anticipated monetary policy meeting tomorrow, while Argentina posted much-needed gains.


Brazil’s benchmark Bovespa Index fell 67.35 points, or 0.27%, while Mexico’s benchmark Bolsa Index jumped 60.21 points, or 0.44%. Argentina’s Merval Index rallied 34.88 points, or 2.57%.


Brazilian shares initially tumbled on word of the London terror attacks, bounced back in the second half of the session as investor jitters subsided, but ultimately ended in the red. A decline in crude oil prices failed to bolster Brazil, which is a net importer of oil.


In economic reports, the IBGE statistics institute reported that industrial production jumped 1.3% in May from the prior month. Meanwhile, the 12-months industrial production figure fell to 7.2% in May from 7.5% in April. The IBGE said that monthly output was boosted by strength from exports that aided employment levels and easing inflation.


Turning to corporate reports, government-controlled Banco do Brasil said that it fired Vice President for Investor Relations Luí­s Eduardo Franco de Abreu and Vice President for Retail Operations Edson Monteiro amid allegations they helped provide the ruling Workers Party a loan under favorably-biased conditions.


Meanwhile, Spain’s Telefonica Moviles announced that Vivo, its Brazilian joint venture with Portugal Telecom, became the first local firm to offer third-generation mobile services.


Online retailer Submarino SA posted a more than 50% advance in its preliminary second-quarter sales to US$ 54 million (127.5 million reais) from the year-ago period. The firm credited Brazil’s June Valentine’s Day holiday and an offline advertising campaign for the greatly improved results.


Mexican issues, much like the broader Latin American markets, strongly recovered from an early plunge sparked by a series of explosions in London that initially roiled global markets.


Mexican shares also received support from U.S. market strength. Meanwhile, investors are awaiting Wal-Mart de Mexico’s second-quarter results, which are due for release after the close.


In economic headlines, the Bank of Mexico said that the Consumer Price Index declined 0.10% in June thanks to a reduction in fruit and vegetable prices. June’s result pushed annual inflation down to 4.33% from 4.60% in May.


Fast-food operator Alsea SA is set to purchase Operadora Dopitam, a Domino’s Pizza sub-franchisee that operates 11 Domino’s Pizza stores. Alsea currently owns 663 outlets, including Starbucks and Burger King outlets, and aims to own 700 by the year’s end.


Argentine shares turned higher late in the session, as bargain hunters moved into the region following recent market weakness.


Planning Minister Julio De Vido said that Bolivian officials want to resume discussions on a pipeline project that would supply Argentina with 20 million cubic meters of natural gas per day.


Elsewhere in Latin America, a leap in metal prices helped boost Chile’s trade surplus to US$ 976.2 million in June from US$ 578.2 million a year ago. The country is the world’s largest copper producer.


Thomson Financial Corporate Group – www.thomsonfinancial.com

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

Brazil’s Landless Lesson: the Bounty of the Land Is for All

On May 17th, Brazilian news media reported that 50 people were injured as landless ...

Brazil’s Lula Praises South America Integration Fast Pace

Brazilian President Luiz Inácio Lula da Silva, speaking at the closing ceremony of the ...

Brazil President Sees Crisis as Chance to Create New Global Economic Order

The president of Brazil, Luiz Inácio Lula da Silva urged unions and workers to ...

Abbott Fell for Brazil’s Blackmail, Says US Group

An American group called USA for Innovation yesterday expressed its disappointment with the Government ...

Petrobras Pre-Salt Production to Reach 100,000 Barrels a Day in 2010

Petrobras, the Brazilian government-controlled oil multinational together with Repsol-YPF and BG Group has found ...

Unemployment Still 10.9% in Brazil

Unemployment in Brazil attained 10.9% in September in comparison with August, its lowest level ...

Brazil’s President-Elect Stays the Course and Keeps Lula’s Finance Minister

Dilma Rousseff, the president-elect, as announced by her press office, has chosen economist Alexandre ...

Brazil’s Oil Hub Gets State-of-Art Medical Support from Great Britain

British Trade Minister Ian Pearson launched the Berkeley Training Center in Macaé, 182 km ...

Mercosur Asks in Brazil: Where’s the Money for Haiti?

A joint communiqué from the Mercosur summit, which took place on Friday in Ouro ...

A Soccer Fable: The Day the World Found Out Brazil Has No Clothes

The other day at work someone asked me, “Hey, Joe, who’s it going to ...