• Categories
  • Archives

Opposition Gains Don’t Deter Brazilian Bulls

Brazilian and Latin American shares rose, ahead of this week’s U.S. presidential election. Stocks gained strength from positive corporate news and reaction to Argentina’s offer for the restructuring of its defaulted debt. Both the Mexican and Argentine markets hit record closing highs.

Brazil’s benchmark Bovespa Index advanced 220.80 points, or 0.96%. Brazilian shares firmed on a pullback in world oil prices, one session ahead of the All Souls’ holiday.


Local markets will be closed Tuesday. Investors brushed off news that the ruling Workers’ Party suffered some losses in municipal mayoral elections.


In an expected win, José Serra of the opposition Social Democratic Party overtook Marta Suplicy of the Workers’ Party in the country’s financial capital of São Paulo.


Following the local elections, certain analysts anticipate that state-run oil company Petrobras will boost domestic gasoline prices, which trail behind sky-high global crude oil prices.


However, doubt has been cast on that position, after the central bank’s interest-rate setting committee criticized Petrobras, indicating it may intervene to put an end to uncertainty regarding local fuel pricing.


Other analysts believe the firm’s management may now seek to assert its independence by postponing the price increases.


In other news, water and sewage utility Sabesp was active. On Friday, the firm announced that it will sell 598.2 million reais in shares via a secondary offering that began Friday.


Sabesp will sell 1.43 billion common shares on the Bovespa exchange and 3.84 billion shares in the U.S. as ADRs, each of which will represent 250 common shares.


On the U.S. economic front, personal income rose 0.2% in September after rising a downwardly revised 0.3% in August.


Personal consumption rose 0.6%, after dropping by an upwardly revised 0.1% in August.


Economists had forecast personal income would rise 0.3% and spending would rise 0.6% in September.


Also, the ISM index fell to 56.8 in October from 58.5 in September. Economists expected the index to rise to 58.9.


Also, construction spending was unchanged in September after rising an upwardly revised 0.9% in August. Wall Street had been expecting September construction spending would rise 0.5%.


PRNewswire
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Your email address will not be published.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 House Speaker Meets Lula Before Deciding on Resignation

Brazil’s Speaker of the House, Severino Cavalcanti, will have talks with president Luiz Inácio ...

100 Birds Die in Brazil. Country on Alert for Bird Flu.

100 birds died of unknown reasons in a farm in the city of Volta ...

In Brazil, Alcohol Is the Main Cause of Crime

National anti-drug policy is being debated in regional forums with various sectors of Brazil’s ...

How the Effort of Brazil’s Senate Chief to Muzzle the Press Backfired

Although the Brazilian constitution defends freedom of speech and Brazil has proclaimed itself a ...

Brazil’s Forest Monitoring Know-How May Be Used in Africa

Brazil's Agricultural Research Corporation (Embrapa) may take satellite ground monitoring systems to African countries. ...

All Things Considered Soybean Is Still Gold for Brazilian Farmers

Despite growing pest problems and soaring fertilizer and transport costs Brazil’s soybean farmers will ...

Brazil’s Atech on the Cutting Edge of Air Traffic Control

Atech Tecnologias CrÀ­ticas, a Brazilian technology company, has just signed a contract to develop ...

Brazil: Strikes Try Lula’s Party

The implications of Piauí Governor’s failure to navigate through an impending disaster could have ...

Brazil Industry Grows Slowly Due to Strong Brazilian Currency

A monthly study by the Federation of Industries of the State of São Paulo ...

We Opposed the War, Brazil Tells Iraq Kidnappers

The Brazilian Minister of Foreign Relations, Celso Amorim, launched an appeal for the release ...