Food and Housing Bring Inflation Up in Brazil

Brazilian equities surged, as a plunge in global oil prices and strong corporate earnings releases bolstered shares. Brazilian shares tracked strength in U.S. stocks, as the Dow closed above 10,000.

Brazil’s benchmark Bovespa Index climbed 321.87 points. Brazilian issues rose, alongside gains in the U.S market and lower oil prices.


Investors were awaiting tomorrow’s release of the central bank’s minutes from its monetary policy meeting last week for clues on the pace of future rate hikes.


At the recent meeting, the bank raised Brazil’s benchmark Selic interest rate by a greater-than-anticipated 50 basis points to 16.75% to combat rising inflation expectations.


However, in related news, São Paulo consumer inflation accelerated 0.53% over the four weeks ended October 23 due to rising food, transport and housing prices, compared with a 0.38% rise over the four weeks ended October 14. Analysts estimated a gain of 0.35% to 0.51% in late October.


Turning to corporate news, stainless steel maker Acesita SA saw its third-quarter net profit leap to 231.1 million reais from 8.4 million reais in the year-earlier period.


The company’s chief financial officer noted that the spike was due to Acesita’s efforts to restructure operations and position itself to make the most of currently high steel prices at home and abroad. Still, the 48% increase in revenue to 824.2 million reals fell shy of some analyst forecasts.


That stock rose. Separately, flat-steel maker Companhia Siderúrgica Nacional’s board approved a plan to buy back up to 6.357 million shares at market prices, starting November 12 and extending for three months.


Thomson Financial Corporate Group
http://www.thomsonfinancial.com/
PRNewswire

Tags:

You May Also Like

Brazil Police Evict Indians and Abandon Them on Roadside

Brazil’s Federal Police and Mato Grosso do Sul state police agents, acting under a ...

Surely you must be joking, Mr. Niemeyer

People don’t seem to live in Brasília in the true sense of the word—they ...

Market Anticipating Higher Inflation in Brazil

In Brazil, the expectations of the financial market regarding inflation are increasingly pessimistic and ...

In World Cup of Spyware Brazil is Only a Runner Up

Angola and not Brazil has the most dangerous soccer team in the world, at ...

Brazil and LatAm Don’t Lack Democracy but Government Quality, Says Global Forum

The continuation of economic growth in Latin America, the challenges that must be met, ...

Dollar Gets a Three-Year High in Brazil

Despite interventions by Brazil's Central Bank, the BC, which for three times tried to ...

Death Squads Won’t Die in Brazil

Amnesty International in its latest report on Brazil shows that high levels of crime ...

Deflation News Not Enough to Boost Market in Brazil

Latin American markets mostly receded, as Brazil’s decline overshadowed Mexico’s modest gain. U.S. markets ...

Continental Adds a Nonstop Flight Between Houston and Rio, Brazil

US-based Continental Airlines will start December 17 a new nonstop seasonal service between its ...

Eyes Wild Open

More than $1.4 billion was spent on Sivam, which consists of a monitoring system ...