Jittery World Market Drags Brazil’s Bovespa 3.5% Down

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Stock exchange The Bovespa, São Paulo, Brazil's stock exchange, worried at the worsening situation of the US mortgage industry ended up this Monday, November 19, with heavy losses.  The Ibovespa, Bovespa's main index, lost 3.52% with a financial volume of almost 10 billion reais (US$ 5.7 billion), more than double the year's daily average of 4.6 billion reais (US$ 2.6 billion).

It seems that investors worldwide are trying to protect themselves in these uncertain times by buying American Treasury securities, considered the world's safest investment.

The Brazilian currency, the real lost more than 1% of its value. It fell 1.766 per U.S. dollar from Friday's close of 1.746.

On Tuesday, November 20, which marks the death of black leader Zumbi dos Palmares, in 1695. the Bovespa will be closed to celebrate Black Conscience Day, a holiday in São Paulo and Rio de Janeiro. 

Trade Surplus

The Brazilian trade balance surplus (exports minus imports) reached US$ 693 million in the third week of November, with exports at US$ 2.678 billion and imports at US$ 1.985 billion.

According to data disclosed today, November 19, by the Brazilian Ministry of Development, Industry and Foreign Trade, average daily exports during the week, which had four business days, stood at US$ 669.5 million, and imports stood at US$ 496.3 million.

In November this year, the trade balance surplus stands at US$ 1.429 billion, with foreign sales at US$ 6.919 billion and imports at US$ 5.490 billion. The surplus is 55.9% lower than the one recorded in November of last year.

So far, in the accumulated result for the year, the trade balance surplus has reached US$ 35.805 billion, a result 10.8% lower than recorded during the same period of 2006. The accumulated surplus for the year is the result of US$ 139.287 billion in exports and US$ 103.482 billion in imports.

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