Bulls Continue on the Loose in Brazil

Brazilian shares continued to roar higher on bullish sentiment, while profit-taking took a hold of the Argentine market. Lower oil prices and a strengthening U.S. market were also in focus.

Brazil’s benchmark Bovespa Index leapt 449.59 points, or 1.53%, while Argentina’s Merval Index eased 2.5 points, or 0.15%. Brazilian shares surged anew, on investor optimism after the central bank cut interest rates earlier in the week. Upbeat research also helped.

An investment bank raised its profitability forecast for the bank sector, citing higher loan growth estimates and increased operating efficiency.

Elsewhere, a major investment bank was positive on producers BHP Billion, Rio Tinto and Brazil’s CVRD, anticipating that surging China iron ore demand will probably drive contract prices higher again next year.

Also of note, Canada’s Canico Resource’s CEO stated he was “not persuaded” by CVRD’s takeover offer for the company. Analysts kept betting that a rival suitor would emerge for Canico.

In other comments, a large investment bank downgraded Telesp Celular Participações, Tele Centro Oeste Celular Participações and Celular CRT Participações to “neutral” from “buy” due to a drop in market share.

Mexican markets were closed today for a holiday, while U.S. counterparts rebounded from recent weakness, thanks to lower oil prices and despite soft economic data. The University of Michigan consumer sentiment index dropped to 76.9 in the preliminary September reading from 89.1 in August, below the anticipated decline to 85.

Also, the current account deficit shrank to US$ 195.7 billion in the second quarter from US$ 198.7 billion in the first period, compared to forecasts for a gap of US$ 193.0 billion.

Argentine stocks eased back on profit-taking, despite pleasing industrial production data. Indeed, August industrial output grew 7.6% year-on-year, or 1.6% from the prior month, well above estimates for an increase of 6.8%.

Thomson Financial Corporate Group – www.thomsonfinancial.com



You May Also Like

Brazil Top Economic Authorities Deny Country Is in a Recession

Brazil is far from stagflation, central bank chief Alexandre Tombini said, forecasting the economy ...

US Prize Winner Brazilian Environmentalist Favors Family Farming in the Amazon

TarcÀ­sio Feitosa, a social activist from the Terra do Meio ("Middle Ground") region of ...

Brazil Wants to Know Why 242 Indians Committed Suicide

José Giacomo Baccarin, secretary of Food and Nutritional Security of Brazil’s Ministry of Social ...

Castor oil plant in Brazil

Brazil Invites You to Plant the Oil of the Future with Us

The 21st century will be marked by a crucial debate: how can we make ...

Brazil Seated on Close to US$ 9 Billion Surplus

Brazil had a US$ 822 million surplus in its current account in August. The ...

Brazil’s Unibanco and AIG End 11 Year Partnership

Brazilian Bank Unibanco – União de Bancos Brasileiros S.A. and American International Group, Inc. ...

Argentina Rescues Cruise Liner Filled with Brazilians

A cruise vessel with 1.612 passengers, mostly from Brazil, finally managed Thursday early afternoon ...

In Iracema, Brazil, You Don’t Live, You Get By

Religion and politics to many are inseparable. I heard this often in Iracema, which ...

Brazilian Volunteers Teaching to Read Win UNESCO Award

A Brazilian educational project carried out in Curitiba, capital of the southern Brazilian state ...

Drought Leads Brazil to Increase Bolivian Gas Imports to Maximum Capacity

Persistent drought in the South is forcing Brazil to increase the amount of natural ...