• Categories
  • Archives

US Inflation Once Again Brings Down Brazilian Stocks

Brazilian stocks retreated, extending recent losses, on continued worries about rising U.S. inflation and interest rates. Argentine shares were further pressured by disappointing local economic data.

Brazil’s Bovespa Index dropped 483.53 points, or 1.26%. Mexico’s benchmark Bolsa Index fell 44.84 points, or 0.22%, while Argentina’s Merval Index lost 29.78 points, or 1.77%.

Brazilian stocks continued to sink still concerned about U.S. inflation and interest rates following data showing a bigger-than-expected rise in U.S. consumer prices in April.

Investors fear that recent signs of inflationary pressure will lead the U.S. Federal Reserve to continue its tightening cycle longer than expected, potentially diverting investment flows away from emerging markets like Brazil.

Closer to home, the Fipe research foundation reported that consumer prices in São Paulo city gained 0.08% in the four weeks ended May 15. That was the same increase seen in the four weeks ended May 7.

On the corporate front, CVRD said it reached an agreement on 2006 iron ore price contracts with South Korean steel maker Posco. Posco agreed to a 19% hike in iron ore fines and a 3.0% decline in iron ore pellet prices. That followed similar agreements with other steelmakers in recent days.

Elsewhere, Mexican shares dipped, as investors continued to fret over the U.S. inflation and interest-rate outlooks. Helping to limit losses, however, a Mexican retailers association, Antad, said sales at its member establishments surged 19.2% in April. Same-store sales rose 9.1% from April 2005.

In other news, engineering and construction firm Empresas ICA won a US$ 105 million contract to upgrade and maintain a highway between Queretaro and Irapuato in central Mexico, the Communications and Transport Ministry said.

Argentine issues dropped amid lackluster local economic data. The national statistics agency (INDEC) said its index of economic activity for March inched up 0.1% from February and rose 7.7% from March 2005. The year-over-year result was well below economists’ forecasts of 8.6%.

Meanwhile, INDEC confirmed that Argentina’s first-quarter unemployment rate was 11.4%, up sharply from 10.1% in the fourth quarter.

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Your email address will not be published.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

Brazil’s Fallen Finance Minister Talks About Meanness Against Him

Brazil’s Ministry of Finance released the entire text of the resignation letter that former ...

Brazilian Tractors Are Competing Overseas

Brazil has modernized its industries that produce agricultural machinery and became a competitive exporter ...

Brazil: Five Landless Dead in Attack by Hooded Gunmen

An attack on an MST (Landless Rural Workers’ Movement) campsite in Minas, Gerais state, ...

UN Finds Out that Human Right Activism in Brazil Is Hazardous Activity

Hina Jilani, the Special Representative of the U.N. Secretary General on the situation of ...

Brazil Radio Station Set on Fire for 3rd Time. Mayor Main Suspect

Brazilian Nova Coari radio, in Amazonas state, in northern Brazil, was set on fire ...

Adman at Center of Brazil’s Corruption Scandal Met Lula’s Chief of Staff Four Times

In testimony Wednesday, August 10, before the Vote Buying Parliamentary Inquiry (CPI), adman/businessman Marcos ...

Brazil Counting on US$ 18 Billion in Foreign Investment This Year

Foreign direct investments in Brazil amounted to US$ 859 million in February, according to ...

US President George W Bush

Bush Won’t Discuss Reducing Ethanol Tariff with Brazil

The ethanol agreement to be signed between Brazil and United States during president Bush's ...

Brazilian Mission Trains Algerian Doctors in Children Heart Surgery

Doctors from Brazil's National Institute of Cardiology (INC), based in the southeastern Brazilian city ...

Czar of Rio’s Underworld

If Rio’s new Public Security Secretary, Anthony Garotinho, makes an impression and reduces the ...