Another All-Time High for Brazil’s Shares

Brazilian stocks climbed on a slump in global oil prices, taking Brazilian equities to fresh closing highs. Crude oil prices fell below US$ 46 a barrel, after the U.S. government reported larger-than-anticipated gains in U.S. distillate and gasoline inventories last week.

Brazilian equities also tracked a rally in U.S. shares, which gained momentum from the drop in oil prices and largely upbeat economic data, including stronger-than-expected manufacturing and consumer spending figures and a positive Beige Book report.


Brazil’s benchmark Bovespa Index rose 106.37 points, or 0.42%. Brazilian shares advanced to a new all-time high, supported by the plunge in oil prices, favorable macroeconomic news and dollar inflows.


In the prior session, data showed Brazil’s third-quarter gross domestic product surged 6.1% from a year ago. Economists noted that the pace of growth was rapid enough to keep the economy growing in the coming months, although not so fast as to produce overheating.


In the latest economic news, Brazil posted a US$ 2.08 billion trade surplus in November, about US$ 1 billion narrower than recent monthly results as imports leapt to their highest pace so far this year.


Regardless, that result boosted the country’s year-to-date trade surplus to a record-breaking US$ 30.20 billion, up 37% from the year-ago period, due to an export boom spurred by a competitive currency, structural changes in the economy and strong international prices for many key exports.


Also, a fall in the so-called Brazil risk, which measures the difference between the yield of local bonds compared with a reference U.S. Treasury bond, reflected increased confidence in the economy.


On the corporate front, state-run oil company Petrobras’ refining director said it its considering building a petrochemical refinery at an estimated construction cost of approximately US$ 3 billion.


Also, he stated that Petrobras may begin construction earlier than the planned 2007 of another refinery for petroleum derivatives.


Thomson Financial Corporate Group
www.thomsonfinancial.com


PRNewswire

Tags:

You May Also Like

A New Push in Brazil for Conservation and Ecotourism

Brazil’s Ministry of Environment (MMA) announced, March 18, in São Paulo’s Ribeira Valley, the ...

Second Group of Iraqi Refugees Arrives in Brazil

The United Nations High Commissioner for Refugees (UNHCR) announced that the second group of ...

New York City Center shopping mall in Rio, Brazil

Brazil: Lack of Tourists Makes Rio’s Shops Sing the Blues This Carnaval

The Brazilian airports' crisis, which reduced the number of domestic tourists in Brazil, is ...

Brazil’s Benchmark Interest Rate the Lowest in 5 Years

For the eighth time running Brazil’s Central Bank on Wednesday, May 31, cut the ...

Brazil’s Trade Balance Surplus Reaches US$ 31 Billion, 11% Lower than in 2006

Exports from Brazil totaled US$ 3.343 billion last week, a performance 21.69% lower than ...

Women Make Up 90% of People Handling Brazil’s Zero Hunger Funds

A study by the Brazilian Ministry of Social Development has found that 90% of ...

Brazil: There Was Never a Black Like Zumbi

November 20 has been National Black Awareness Day (Dia Nacional da Consciência Negra) in ...

Brazilian Jobs Grow 3%, But for 12th in a Row GDP Projection Goes Down, to 0.79%

In 2013, 1.49 million job openings were created in Brazil. In 2012, 1.15 million ...

Brazilians May Need ID and Social Security to Surf the Internet

If a bill being voted this Wednesday, November 8, in the Brazilian Senate’s Constitution ...

Brazil Proposes Bigger Fishing Fleet to WTO

Brazil will take to the World Trade Organization meeting, in Geneva, on the 13th, ...