• Categories
  • Archives

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Your email address will not be published.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

Overcrowding and Lack of Maintenance Leave 5 Dead in Rio’s Charming Trolley Car

The Santa Teresa trolley car, one of Rio de Janeiro’s postcard attractions, had an ...

Brazil’s Residential Developer Gafisa Gets US$ 50 Million US Infusion

Equity International, the privately-held international real estate investment company of Sam Zell’s Equity Group ...

Brazil Uneasy About US Soldiers on Its Borders

“Another Amazon is possible” will be the slogan in Manaus from today (18 January) ...

Brazil’s Foreign Exchange Deficit Over US$ 4 Billion This Month

The balance of dollar inflow and outflow in the country until the 24th this ...

Brazil Vows to Join OPEC After Striking Huge Oil Reserve

Brazilian President, Luiz Inácio Lula da Silva, talking this Saturday, November 11, during the ...

Brazil Getting Ready for 32 Million Elderly

By 2050, the number of people in Brazil over the age of 60 will ...

High-end Furniture Fair Brings Dozens of Foreign Countries to Brazil

At least 35 international retailers and representatives should be participating in the International Business ...

Brazil to Make Record 2.2 Million Cars in 2004

Brazil’s vhicle production rose 5.8% in November, when 201,340 units rolled off the assembly ...

Brazilian Agriculture Gets Over US$ 6 Billion from Government This Year

Brazil’s Ministry of Agriculture should have its highest budget since Brazilian president Luiz Inácio ...

Brazil’s Perdigí£o Announces Push into Foreign Market

Brazilian food company and meat processor Perdigão has informed shareholders and the market in ...