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:

  • 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Your email address will not be published.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

Abu Ghraib Is Here, in Brazil

Why do we not confront the evils of child prostitution, of child labor, of ...

Brazil Uses Comics and Ronaldinho to Fight Drugs

At yesterday’s, June 21, opening ceremony of the 8th National Anti-Drug Week, in the ...

Stones Roll Their Biggest Show Ever in Rio, Brazil

Just a week before Carnaval, the Rolling Stones drew an estimated one and a ...

The Official Word from Brazil: China Is a Market Economy

Brazil’s President Luiz Inácio Lula da Silva received today the President of China, Hu ...

Brazilian Chicken Exports Grow 20%

Brazilian chicken exports amounted to 231,871 tons in March, for revenues of US$ 256.8 ...

Brazil: Favela Gets Ghetto-Fabulous

While a new initiative by Rio’s police hopes to clamp down on the drugs ...

Brazil’s Gol Reduced Fares Flying High

Gol, Linhas Aéreas Inteligentes, Brazil’s low-fare, low-cost airline, is celebrating the success of its ...

The Auditorium Wars

The success of TV hosts has created a new class of nouveaux riches in ...

Last Palestinian Refugee Group Resettled in Brazil

The last group of a total of close to 100 Palestinian refugees who lived ...