Brazilians Cheered by 4.8% Boost to Industrial Output

In Brazil and Latin American in general shares moved broadly higher today, July 6, partly due to bargain hunting following steep slides yesterday.

Mexico paved the way in gains, as the more conservative candidate won the official election results in an extremely tight election; although, it could be another two months before the election results are completely validated. Meanwhile, all eyes will likely be on tomorrow’s U.S. employment report.

Brazil’s Bovespa Index rose 155.10 points, or 0.43%. Mexico’s benchmark Bolsa surged 533.00 points, or 2.73%, while Argentina’s Merval Index rose 14.21 points, or 0.84%.

Brazilian shares managed to reclaim some of the steep losses incurred during yesterday’s trading. Investors were cheered by some downbeat economic news from the U.S., which signaled to some that the interest rate tightening cycle could be nearing an end.

The Institute for Supply Management said its headline services sector figure fell a stronger-than-expected amount to 57% in June from 60.1% in May.

On the local economic front, the Brazilian Census Bureau, or IBGE, said that industrial output rose 4.8% in May compared to a year ago, and increased a higher than expected 1.6% month over month. The most recent result was bolstered by a jump in automotive production.

Meanwhile, the Brazilian Motor Vehicle Manufacturers Association, or Anfavea, said that June’s motor vehicle production fell 6.7% from May to 225,831 units. The most recent figure slid 1.5% from the year-ago figure.

Mexican shares rallied on the session, as market friendly Felipe Calderon won the official count for Mexico’s presidential rate. Calderon won 35.88% of the 41 million votes counted, while Lopez Obrador won 35.31%.

Nevertheless, rival Andrés Manuel Lopez Obrador also claimed victory and warned he would challenge the results at the Federal Electoral Tribunal. The tribunal has until September 6 to investigate voting irregularities.

Elsewhere, Argentine issues followed the broader regional markets higher, while there were limited corporate or economic reports to direct trading.

Thomson Financial –


You May Also Like

Brazil Invokes Moral Obligation and Opens Lab in Africa to Make Aids Medicine

The president of Brazil, Luiz Inácio Lula da Silva said Friday, October 17, during ...

Brazil’s Cuts of Bolivian Gas Purchases by 60% Alarm La Paz

Brazilian Mines and Energy minister Edison Lobão announced that Brazil will temporarily shut down ...

Brazilian singer-composer Milton Nascimento

Brazil’s Milton, the Planet’s Voice, in a Revealing Mood

Milton Nascimento had a big smile on and the majestic posture when we entered ...

Brazil-India Joint Venture Wants to Export Wagons

Santa Fé, a maker of wagons that is based in the city of Santa ...

Brazil Goes After Yankee Consumer

The search for new market niches for Brazilian products, in the face of the ...

An ATM machine from 24 Hour Bank in Brazil

If Brazil’s ATMs Are Getting Stingier and Stingier Blame It on Falcon

Did you know that when you withdraw money at an ATM machine you are ...

Not So Clean

"Part of our job is trying to educate people in Brazil about the enormous ...

Brazilian Congressman Calls for Withdrawal of Troops from Haiti

Brazil’s House Representative Orlando Fantazzini  suggested the withdrawal of Brazilian soldiers from Haiti. Fantazzini ...

Brazil’s Embraer Sells Its First E-Jets to a Brazilian Airline

Brazilian airline BRA Transportes Aéreos signed a contract with Brazil's Embraer to buy 20 ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]