Brazilian stocks are moving higher, although trading is tentative considering today’s shortened market session in the U.S., following yesterday’s Thanksgiving holiday.
Brazil’s market is celebrating some upbeat economic reports, including a drop in the unemployment rate. Brazil’s benchmark Bovespa Index is rising 36.58 points, or 0.15%.
Brazilian issues are rebounding somewhat, after earlier profit-taking. Yesterday, Brazilian stocks reached new highs, bolstered by state oil company Petrobras, which increased its prices for gasoline and diesel fuels in Brazil.
The firm will charge 7% more for gas and 10% more for diesel at the refinery level, starting today.
Analysts largely applauded the move, as some see Petrobras correcting a distortion between Brazilian prices at the pump and crude oil prices.
Separately, Petrobras announced that it struck light oil in its onshore block in the Sergipe-Alagoas basin.
In economic headlines, Brazil’s unemployment rate fell to the lowest level in 22 months in October to 10.5% from 10.9% in September.
The decline was credited to General Electric, Burger King and other firms boosting hiring on increased demand for their products locally and overseas. Analysts expected a higher rate of 10.6% for October.
Also, Brazil reported a leap in its public sector primary budget surplus of 8.2 billion reais in October, placing it securely above its full-year target.
That compares to a surplus of 6.96 billion reais last year. Economists expected a primary budget surplus of 6.6 billion reais in the latest reading.
In other corporate reports, yesterday, Banco do Brasil posted a 25% leap in its third-quarter profit, aided by increased banking fees and lending. Brazil’s largest bank reported a higher-than-expected quarterly net profit of 833 million reais, compared with 665 million reais a year ago.
Thomson Financial Corporate Group