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Jittery World Market Drags Brazil’s Bovespa 3.5% Down

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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  • Show Comments (3)

  • shelly

    AES
    I know our economy is doing well, but do you think the poor will benefit from it? I met a few ex-pats here today, everyone seems pumped about this story, but I am cautious, Brazil has been the “land of almost” for quite a while. The problem we have is that we are a rich country with plenty of resources. But the politicians in BR are so corrupt and there is nothing anyone can do about it. As a matter of fact, we’ll continue to see the same problems in 10 years: violence in Rio, poverty, children out of school. I would love to go back to Brazil, but not in current circumstances.

  • Yowser

    Long term trendline
    The corrections in global markets are only a correction. Recently the markets were rising too steeply and this type of trend cannot be sustained. Corrections in the market are only money leaving one pocket and going into another. The money does not just disappear into air.

  • AES

    Hey they just discovered oil. Brazil is a bargain, Bovespa is made transparent, the Real is strong, balance of payments are strong, foreign reserves are in the billions, interest rates are down, inflation is down, Brazil has water in a global drought, there is a high return on investment, buy Bovespa. There is no reason for Bovespa to suffer the vagaries of the U.S. market. Its sphere of economic influence is Africa, the Middle East, and the Far East, principally food, energy and raw material. Brazil is the largest supplier of Iron Ore, Beef and Poultry, and Ethanol to the world. The Real is demonstrating to be one of the strongest currencies in a basket of Warren Buffet currencies. Brazil has just discovered one of the largest deposits of oil and gas on the planet. At $100 /- per barrel that is a significant amount of money to transform Brazil.

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