• Categories
  • Archives

Weak US Job Market Gives Boost to Brazilian Stocks

Brazilian and Latin American stocks climbed, as weaker-than-expected U.S. jobs data fueled hopes that the U.S. Federal Reserve will pause its monetary tightening cycle.

Brazil’s Bovespa Index rose 193.88 points, or 0.51%. Mexico’s benchmark Bolsa index jumped 293.10 points, or 1.53%, while Argentina’s Merval index added 10.74 points, or 0.64%

Brazilian stocks advanced, building on gains of 3% in the previous session, as a smaller-than-expected rise in U.S. non-farm payrolls in May eased concerns that the Federal Reserve will continue its tightening cycle longer than expected to combat inflationary pressure.

A new poll showed Brazilian President Luiz Inácio Lula da Silva leading in his bid for a second four-year term by a wide margin. If elections were held today, Lula would win 49% of the vote against only 23% for the nearest contender, Geraldo Alckmin of the Social Democratic Party, according to the poll.

It was conducted by the Vox Populi polling organization and published by Carta Capital. Late Thursday, June 1st, another poll, published by the Ibope institute, showed Lula ahead of Alckmin by a margin of 43% to 19%. Brazilians go to the polls in October to choose a president, state governors and members of congress.

Elsewhere, Mexico’s IPC stock index rose after losing more than 900 points, or 4.6%, during the first three days of the week, as investors sold off emerging-market assets amid fears of rising U.S. interest rates.

Most major issues gained today, led by market heavyweight America Movil. Fixed-line phone company Telmex also ended the session higher, as did cement giant Cemex; bank Banorte rose as well.

A major investment bank reinstated coverage of Banorte on Thursday with a "buy" rating based on valuation. The investment bank said Banorte’s shares are attractively valued, trading at an estimated 2006 price to book value of two times, which is lower than the levels posted at year-end 2004 and 2005.

Argentine issues saw another day of mild gains, although volumes were very thin amid a dearth of local market news.

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Your email address will not be published.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

In Brazil See-Saw Is Up While Lula Ponders Whether to Run Again

Latin American markets strongly recovered from weakness yesterday, on a Brazilian rally. Political tensions ...

The Dream Is Dead. Most Brazilians No Longer Trust Lula.

Most Brazilians (52%) no longer trust their President Luiz Inácio Lula da Silva. A ...

Sofia’s misfortunes

And very slowly I saw the teacher, the whole of him. Very slowly I ...

Indigent Brazilians Fall to 14% or 26 Million People

At least one of the eight Millennium Development Goals (MDGs) as established by the ...

Carlos Eduardo Cabral accused of killing Brazilian real estate agent Célia Carvalho

Brazilian Seduces Via Net and Kills. Then Is Caught in Net Sting

Brazilian real estate agent Célia Maria de Carvalho Damasceno, 43, started a passionate romance ...

Brazil’s Lula Can’t Be Like All the Others

Brazilian President Lula da Silva should stop repeating partial projects and embody an alternative ...

A New Low in Brazil: Only 31% Are Happy with Government’s Job

Brazil’s latest Sensus Institute/National Transportation Confederation (CNT) public opinion poll on the government shows ...

A Pre-Columbian Brazilian Practice Teaches World How to Grow Food

With food riots across the globe in the news, the immediate cause of food ...

Fresh Icons

Thanks to the lowest common denominator factor even the less gifted new Brazilian idols ...