• Categories
  • Archives

No Change is Good News for Brazilian Investors

Latin American stocks were mixed to higher, with Brazilian shares posting modest gains on growing hopes for a continuation of Brazil’s austere fiscal and monetary policies that have been credited with reviving Latin America’s largest economy. Meanwhile, pleasing U.S. economic data boosted Mexican equities.

Brazil’s Bovespa Index rose 285.19 points, or 0.76%. Mexico’s benchmark Bolsa Index climbed 81.66 points, or 0.43%, while Argentina’s Merval Index added 6.18 points, or 0.34%.

Brazilian stocks gained ground, as investors grew less concerned that Guido Mantega’s recent appointment as finance minister might lead to a major change in economic policy.

Helping to calm nervous investors, Mantega said the government would meet its ambitious fiscal austerity goals for 2006. Investors were also pleased with appointment of market-friendly economists Bernard Appy and Carlos Kawall, as deputy finance minister and treasury secretary respectively.

"We believe that both names help in signaling to the markets the continuation of the current economic policy," a major investment bank wrote in a note to clients.

Separately, President Luiz Inácio Lula da Silva today named nine new ministers of state to replace officials leaving office to participate in the country’s October elections. Among the key posts undergoing a shuffle are the ministers of defense, health and the interior.

In corporate news, aircraft maker Embraer said late yesterday that it plans to launch three new executive jet models, local news services reported.

Mexican issues turned around late in the day, after closely following downbeat U.S. markets for most of the session. U.S. shares moved lower, despite economic data released indicating tame inflation and improved consumer sentiment.

Meanwhile, the Senate approved a new radio and television law that some critics believe favors existing broadcasters, such as Televisa, because it will allow them to acquire spectrum for high definition television possibly without paying for it.

Conglomerate Alfa SA intends to invest US$ 1.2 billion over the next three years to expand capacity in its auto parts, petrochemicals and food operations. The firm jumped higher on the day.

Argentine issues traded similarly to yesterday-modestly lower, amid low trading volume. In economic news, the Ministry of Labor said the employment index rose 0.5% in February from January, bringing the index up 9.8% from February last year.

National power grid operator Cammesa will begin accepting construction bids next week for an expansion of Argentina’s two main gas pipelines. The move should help curtail gas shortages.

Thomson Financial – 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

Africa Wants to Share Money Brazil Will Get from US for Subsidizing Cotton

A ruling by the World Trade Organization (WTO) dispute panel allowing Brazil to retaliate ...

UNPUBLISHED Republic

Social crisis? What crisis? The press is the one that creates the crisis. By ...

In Brazil, The Law Is Never For You When You Have Friends

Anyone wishing to understand how Brazil really works will need to also consider the ...

Soft on Terror

The Rio Carnaval or New Year celebrations would be the ideal target for Bin ...

With Public or Private Funds Brazil Is in a Rush to Fix its Roads

Brazil’s government hopes to award the concession for the BR-163 highway, which connects Cuiabá ...

After Iran Warning Obama Sends to Brazil His Number One Man for LatAm

The governments of Brazil and Bolivia reacted strongly to the US message to Latin ...

Santa Catarina, Brazil, Sells Mercosur US$ 207 Million But Buys US$ 307 Million

Exports from the southern Brazilian state of Santa Catarina to the Mercosur, a customs ...

Brazil’s Birth Rate Has Stabilized at 2.1 Children per Woman

Brazil’s birth rate began falling in the mid-1960s, dropped steadily for over two decades ...

2008 Predictions: Barack Becomes US President and Brazil Stocks Boom

Among predictions for 2008 made by Pequot Capital Chief Investment Strategist, Byron R. Wien, ...

Brazil Drags Latin America Up

Latin American markets rose, led by a surge in Brazilian equities to a record ...