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:

  • 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Your email address will not be published.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

Brazil’s Black Monday Brings Market Down 5.43% and Dollar Up 7.53%

It was another black Monday in the Brazilian stock market, this October 6. São ...

South America Is More than Drugs and Crime, Brazil’s Lula Will Tell Obama

Luiz Inácio Lula da Silva, the President of Brazil, revealed that during his coming ...

Brazilian President Vows Not to Seek a Third Term

Brazilian President Luiz Inácio Lula da Silva says he will not seek a third ...

Brazil’s Gol Airline Merges Varig and Gol, But Keeps Both Brands

Brazilian airline Gol Linhas Aéreas, which controls Gol and Varig announced this Wednesday, July ...

Three Ministers Take Brazilian Message to Davos

Brazilian Foreign Minister, Celso Amorim, is in Davos at the World Economic Forum where ...

Brazilian Press: Bring Back the Journalists!

The media, taken as industry or institution, finds itself paralyzed. Its reactions are counterproductive ...

Arabs Buy Close to Half of the Eggs Brazil Exports, a 400% Jump

Brazilian exports of eggs to the Arab countries grew 423% from January to October ...

Brazil Appeals that Maids Be Given the Benefit of the Law

During the week in which International Women’s Day is commemorated, the Brazilian government will ...

Brazil Strikes Gas and Oil Once Again in Deep Sea

State-controlled oil multinational Petrobras confirmed this week the discovery of new natural gas reservoirs ...

Brazil Issues Bonds in Reais to Help Pay US$ 16 Billion in Debt

Brazil's National Treasury announced today, February 7, its third issue of treasury bonds in ...