• Categories
  • Archives

Rising Foreign Investment Lifts Brazilian Stocks

Brazilian investors were encouraged by a strong day on Wall Street and new economic data while Mexican stocks closed higher for a second- consecutive session, as investors took advantage of recent weakness to go bargain hunting.

Brazil’s Bovespa Index surged 914.50 points, or 2.72%. Mexico’ benchmark Bolsa gained 374.93 points, or 2.11%, while Argentina’s Merval rose 29.15 points, or 1.88%.

Brazilian stock prices increased their gains today, as investors reacted positively to current-account figures released by the Brazilian Central Bank (BC).

Brazil posted a May current-account surplus of US$ 475 million, up from US$ 241 million in April. The central bank said foreign direct investment in May was US$ 1.58 billion, up from US$ 790 million in April.

Amid the volatility in global stock markets in recent weeks, Wall Street tends to influence the Ibovespa strongly. Despite today’s gains, analysts expect investors to remain cautious ahead of the U.S. Federal Reserve’s Federal Open Market Committee meeting next week.

In corporate reports, airline Varig canceled more than a third of its daily flights yesterday, following the approved sale of the firm to the TGV consortium this past Monday.

Elsewhere, Mexican stocks were higher, alongside upbeat economic data. After a bout of selling that knocked 24% off the IPC in just over a month, the market has fluctuated on modest volume.

In economic headlines, the National Statistics Institute, or Inegi, said that unemployment declined to 2.9% in May, compared with 3.3% in April and 3.3% a year ago.

Meanwhile, shares of media group Televisa ended higher; the company is among concerns planning to bid, along with several partners, for U.S. Spanish- language broadcaster Univision.

Elsewhere, Argentine shares tracked other Latin American issues higher today on Wall Street’s strong performance, as investors greeted positive earnings reports that eased recent interest-rate and inflation woes.

Meanwhile, French retail group Carrefour has filed a complaint in Argentina against the accounting firm PricewaterhouseCoopers and others, claiming it paid too much for the supermarket chain Norte Supermarkets in 2001 as the result of fraud.

Carrefour and its Argentine unit alleged Norte’s accounts were inflated by at least US$ 120 million, raising the acquisition price of US$ 253 million by 40%.

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

Paradise Regained

A local from Lagoinha once described it to me as one of those places ...

FIFA Doesn’t Like Brazil’s Pace in Preparation to Stage the 2014 World Cup

FIFA’s president Sepp Blatter is not hiding his displeasure at the way Brazilian are ...

Women’s turn to compose

Despite having some of the best female interpreters in the world, the Brazilian music ...

Four Policemen Arrested in Case of Murdered Brazilian Journalist

It was announced that four members of Brazil's military police were arrested on March ...

Brazil and Russia Strengthen Technological Ties

Brazil and Russia are talking about creating a center for technology transfer in Brazil, ...

Brazil’s Cattle Industry Shaken by Plant Closures

The fourth largest Brazilian exporter of beef has halted slaughtering operations at all 11 ...

Deforestation Declines Over 30% in Brazil, But Loggers Open New Fronts

Deforestation declined nearly 41% in the state of Mato Grosso, Brazil, in 2005, more ...

Brazilians Take to the Streets Against Violence and Corruption

Thousands of Brazilians took to the streets of the country’s main cities on Sunday ...

Brazil’s Trade Surplus in First Four Months 68% Better than Last Year’s

Brazil's trade surplus (the difference between exports and imports) reached US$ 547 million in ...

China and Brazil Reach Agreement on Soy Oil

The Chinese government guaranteed that it will not reject shipments of crude soy oil ...