• Categories
  • Archives

Bargain Hunters Reverse Brazil’s Stock Market Slump

Brazilian stocks rocketed higher, as investors went bargain hunting following a recent sell-off on concerns about rising U.S. inflation and interest rates.

Brazilian shares were further boosted by upbeat local economic data, while indications of U.S. economic strength lent additional support to Mexican issues. Argentina’s market was closed for a national holiday.

Brazil’s Bovespa Index rallied 1776.70 points, or 4.96%. Mexico’s benchmark Bolsa Index leapt 600.14 points, or 3.19%.

Brazilian stocks rocketed higher, as investors snapped up recently beaten down shares while cheering signs of strength in the local economy.

Brazil’s central bank said today, May 25, that the government posted a record primary budget surplus in April of 19.43 billion reais, up from 13.19 billion reais in March.

Also, the Brazilian Census Bureau (IBGE) reported today that Brazil’s official jobless rate in April was unchanged from March’s rate of 10.4%. Economists had expected a rate between 10.0% and 10.6%.

In corporate news, long-distance telephone carrier Embratel Participações SA was in focus following news that the company’s parent, Telefonos de Mexico SA, will maintain its cash tender offer for outstanding shares until June 7.

Meanwhile, a major investment bank upgraded shares in electric power firm Eletrobrás to "Neutral 2" from "Reduce 2," citing a more favorable valuation.

Elsewhere, Mexican shares jumped, as investors went in search of bargains following a six-day losing streak on concerns about rising U.S. interest rates.

Signs of strength in the economy of Mexico’s biggest trading partner also lent support to the bolsa. The U.S. Commerce Department reported today that U.S. gross domestic product grew at a 5.3% annual rate in the first quarter, up from an initial estimate of 4.8%.

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Your email address will not be published.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

With EU Help, Amazonas, Brazil, Creates New Forest Reserves

Governor Eduardo Braga, of the state of Amazonas, Brazil , signed decrees today creating ...

How Brazilians Learned How to Put the Sweet in Melon

Yellow tones are part of the landscape of the Northeast of Brazil, a sunny ...

Boeing Crash: Brazilian Minister Says Legacy’s Transponder Was Off

Early analysis of the flight data recorders from two planes that collided in Brazil’s ...

Brazil Woos Germany with Biofuel and Tourism

The 23rd Brazil-Germany Business Encounter and the 32nd Meeting of the Brazil-Germany Economic Cooperation ...

Brazil Worried International NGO’s Want to Take Over the Amazon

The 10th National Conference of State Legislatures, which began in Brazil Wednesday, May 17, and ...

Brazilian President Lula and Geraldo Alckmin will face each in runoff on October 29, 2006

Lula Wins But Alckmin Is Favorite to Be Brazil’s Next President

A little over five hours after the polls closed in Brazil, this Sunday, the ...

Brazil Is Not Finished with the Middle East. Lula to Revisit Region This Year

The Brazilian government is betting on the promotion of official visits and trade events ...

Brazil Cajoles Caribbean Nations Into Backing It for UN Seat

Brazil’s Minister of Foreign Relations, Celso Amorim, said that the Brazilian government is negotiating ...

Brazil’s Supreme Clears Way for Probing Accounts of Fallen House Speaker

Brazil’s Federal Supreme Court (STF) authorized the disclosure of bank and telephone accounts belonging ...

US Crisis Takes Chinese to Brazil and Latin American Neighbors

Currently visiting Argentina, Chinese Vice-Premier Hui Liangvu signed accords to boost cooperation in agriculture, ...