Brazil Markets Slow Down After Record Highs

Brazilian markets weakened on profit taking following recent gains. Yesterday, Brazilian equities set new record closing highs. Profit taking overtook enthusiasm regarding a further decline in global oil prices.

Crude oil prices continued sharply lower to well below US$ 44 a barrel, following yesterday’s unexpectedly robust U.S. inventory data, as well as indications OPEC will likely keep production at current levels when it meets next week.


Brazil’s benchmark Bovespa Index shed 34.30 points, or 0.14%. Brazilian stocks ebbed, as investors logged profits following a new all- time high in the previous session, despite the impact of continued declines in world oil prices.


The fall in oil prices pressured shares of Petrobras, which generally follows the trends in international oil markets for its domestic fuel prices.


That stock had risen notably in recent session. Analysts commented that recent positive macroeconomic news in Brazil brightens the medium-term outlook for equities.


Following recent weakness in the U.S. dollar, investors focused on comments from European Central Bank President Jean-Claude Trichet for signs of a potential currency intervention scheme.


However, the ECB president declined to comment on the implications of the rising euro, other than to note that, “recent moves were unwelcome.”


Brazilian airline Gol continued to soar after Petrobras said it cut its price for jet fuel by 2.2% on Wednesday.


Still, Varig, Viação Aérea Riograndense, was not so lucky, after the new head of Brazil’s National Development Bank said the government will not provide direct loans to rescue the debt-laden airline from 6.6 billion reais of debt, but may finance a group that would take over the carrier.


Thomson Financial Corporate Group
www.thomsonfinancial.com


PRNewswire

Tags:

You May Also Like

Brazil’s Deforestation Worries Scientists

Brazilian scientists are discussing ways to stop the destruction of Brazil’s Amazon rainforest. One ...

Taí­s Araújo is Xica da Silva in Brazilian soap opera

Xica, the Brazilian Slave Who Became Empress, Is Back on US TV

Ten years after becoming a hit in Brazilian TV, the novela (soap opera) Xica ...

Brazilian Entrepreneurs Bullish on Brazil

The results of October’s 157th Manufacturing Industry Survey, conducted by the Brazilian Institute of ...

Brazilian Exports to the US Fall, But Grow 25 to the Middle East

Brazil exported in January the equivalent to US$ 9.271 billion, an increase in 24.5% ...

Brazil Indians Ready to Die for Land

Despite a judicial order against Brazil’s Krahô-Kanela Indians they refuse to leave Mata Alagada, ...

For Brazil Land Reform May Be Key to Peace for Indians

The President of the National Institute of Colonization and Agrarian Reform (Incra), Rolf Hackbart, ...

Brazil’s Petrobras Gets Top Honors for Sustainability and Ethics

Brazil's state-controlled oil multinational Petrobras was considered the most sustainable oil company in the ...

All of Brazil Grinds to a Halt for World Cup, Even Supreme Court Closes Shop

82% of Brazilians intend to watch the World Cup games at home, according to ...

Amnesty Wants Full and Public Probe on Killing of Brazilian by London Police

A jury at the Central Criminal Court in London reached the verdict today (November ...

FTAA: Brazil Toughens Up Against U.S.

On September 7th, Brazil’s Independence Day, marches will take place throughout the country with ...