• Categories
  • Archives

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

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Your email address will not be published.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 Threatens to Expel NGOs and Foreigners from the Amazon

The Brazilian government is drafting a law asserting sovereignty over the often lawless Amazon ...

An Arabian Night’s Café in Brazil

Low lights, a warm environment, candlelit tables, carpets on the walls, cushions on the ...

Carla Hassett? You’ve Heard This Brazilian. We Bet.

{mosimage}Sitting in a sidewalk café in Los Angeles, Carla Hassett is hard to miss. ...

161 Brazilians on Death List Due to Land Dispute

A work group established by the Special Secretariat of Human Rights has begun to ...

For World Bank Chief, Brazil Is Doing Well, But Millions Are Still Too Poor

Brazilian President Luiz Inácio Lula da Silva met Thursday, December 15, with the president ...

A Brazilian Musical Celebration Finds Its New York Expression

In Northeastern Brazil a forró party unites communities and generations, with couples dancing, locked ...

Brazil's Petrobras offshore platform

Nigeria Adds Ethanol to Its Gas and Brazil Is Supplying the Additive

Brazilian state-owned oil company Petrobras will sell, in the following days, an initial shipment ...

Arabs Rely More on Brazil and Less on the US and EU for Imports

Brazilian Exports to Arab countries yielded US$ 3.233 billion in the first half of ...

Brazil Exports 2.6 Billion Liters of Ethanol

Brazilian ethanol exports, which amounted to 2.6 billion liters in 2005, have been growing ...

Brazilian Indian Chidren Get Vitamin A in Effort to Reduce Infant Mortality

Brazil’s National Health Foundation (Funasa) will begin giving some 10,000 Indian children in Xavantes ...