Brazil’s Unemployment Reaches Record Low in 2 years

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
www.thomsonfinancial.com


PRNewswire

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