Brazilian Stocks Down on US Interest Rates Concerns

Latin American shares collectively declined alongside a depressed U.S. market. Brazilian shares ultimately soured, and the local market closed early due to Brazil’s game against Ghana at the World Soccer Cup competition.

U.S. interest rate concerns continued, as higher rates tend to push money out of emerging markets.

Brazil’s Bovespa Index fell 255.51 points, or 0.74%. Mexico’s benchmark Bolsa slumped 469.93 points, or 2.54%, while Argentina’s Merval Index receded 22.42 points, or 1.38%.

Brazil reversed direction later in the session and ultimately turned negative. Local shares were partially influenced by declines in the U.S. ahead of this Thursday’s U.S. interest rate decision. Analysts widely expect a rate hike this Thursday, with a possible hike also at the next meeting in August.

In economic headlines, the Fipe research foundation reported that consumer prices in São Paulo dropped 0.44% in the four weeks ended June 23, a slower pace in declines compared to the 0.50% drop witnessed in the four weeks ended June 15.

Mexican shares also continued to retreat today, alongside declines in the U.S. All eyes remain on Thursday’s U.S. FOMC meeting on interest rates and local presidential elections this coming weekend.

On the economic front, the National Statistics Institute, or Inegi, said its global indicator of economic activity, or IGAE, advanced 1.8% in April compared to a year ago. On a seasonally adjusted basis, the most recent result was up 0.79% from March.

Media conglomerate Grupo Televisa bucked the broader negative trend in favor of gains. The firm lost its bid to purchase U.S.-based Univision, which instead opted to be bought out by a consortium of private equity investors for US$ 12.3 billion.

Argentine issues also succumbed to negative sentiment, following two consecutive sessions of gains. In economic news, the national statistics agency, or Indec, said that May construction activity jumped 23.9% on the year and 2.0% from April on a seasonally adjusted basis.

Retail sales were also in the spotlight. Indec reported that supermarket sales rose 2.0% in May from April, and advanced 8.9% from a year ago. Shopping center sales advanced 2.4% on the month and rose 11.1% on the year.

Thomson Financial – www.thomsonfinancial.com

Tags:

Ads

You May Also Like

Brazil’s Chicken Exporters Worried about Dollar Fall

Brazilian poultry exports added up to US$ 259.8 million in the month of April, ...

Brazil’s Development Bank Lends US$ 14.8 Billion

The Brazilian Development Bank (BNDES) spent US$ 14.8 billion in loans last year. According ...

Argentina’s President Elect Tells Brazilians: ‘We Want Results’

Stating that it had been a most "fruitful and successful" meeting, but not revealing ...

Brazil Lula’s Top Advisor Knew of Vote Buying, Says Head of Labor Party

Private and government companies helped financed the “vote buying” in the Brazilian Congress revealed ...

New Data on Brazil’s Low Competitiveness Are Not Accurate, Says Minister

Brazil dropped eight places in the global competitiveness ranking, according to a report released ...

A Brazilian Musical Celebration Finds Its New York Expression

In Northeastern Brazil a forró party unites communities and generations, with couples dancing, locked ...

Counting on Varig’s Demise Brazilian TAM Gets 37 New Airbus Jets

While once monopoly Brazilian Varig continues a painful agony in its death bed, TAM, ...

Venezuela’s Deals Are Too Good to Pass, But Brazil Has Been Resisting

While crowds of cheering supporters gathered outside the National Assembly in Venezuela on August ...

Amid Explosive Growth Brazil’s Internet Stumbles over Hacking, Piracy and Censorship

As a rising star on the global stage and as the current financial model ...

Brazil, Finally Vaccinated Against Lula and the PT

São Paulo is a rich town, isn’t it true? There is a miniscule minority ...