• Categories
  • Archives

Low Interests in US Keep Brazil Market Humming

Brazilian shares rose again this December 3. Brazil’s market ended at a fresh high on U.S. employment news, lower oil prices and optimism regarding the local economy. Brazil’s benchmark Bovespa Index gained 267.57 points, or 1.06%.

In the U.S., non-farm payrolls grew by 112,000 in November following a 303,000 increase the prior month. The latest payroll increase fell short of the 200,000 gain predicted on the Street. Also, September and October payroll figures were downwardly revised.


Brazilian stocks climbed to a new record close, as the weak U.S. jobs data eased concerns over aggressive interest rate hikes by the Federal Reserve. Higher U.S. interest rates tend to draw investments away from emerging markets, such as Brazil.


Also, rate hikes could help halt the dollar’s slide against major currencies, which has benefited Brazilian shares.  Additionally, continued declines in global oil prices added support, as Brazil is a net oil importer.


Taking advantage of the disappointing U.S. payrolls release, which inspired a rally in the emerging debt market, Brazil launched another US$ 500 million of its global bond due to mature in 2014. The re-sale added to a previous US$ 750 million 10-year issue made in July.


Turning to economic news, the University of São Paulo (USP, Universidade de São Paulo) said consumer inflation in Brazil’s largest city eased in November.


The Fipe (Fundação Instituto de Pesquisas Econômicas) inflation index rose 0.56%, down from the 0.60% increase in October, as food prices, which have the heaviest weighting in the index, declined.


The November result was in line with forecasts, in a range from 0.50% to 0.60%.


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Your email address will not be published.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 Invests 1% of GDP in Technology. That’s Not Enough.

The only way Latin America can overcome 25 years of low economic growth is ...

Brazil: Trial of US Nun’s Murderer Changes Venue Due to Fear of Threats

Amair Feijoli Cunha (Tato), one of the defendants accused of participating in the murder ...

Why Is Education Failing in Brazil? For Lack of Trying.

Last week the Chamber of Deputies conducted an opportune debate around one question: “Why ...

Exports from Rio Almost Double

Exports from the state of Rio de Janeiro, Brazil, totalled US$ 683.6 million in ...

On Its Way to a Glorious Destiny Brazil Has to Deal with Lack of Savings and Obesity

Brazilian success is being vastly praised inside and outside the country and there are ...

After Amazon Gang Arrest, Brazil Expects Reduction in Deforestation

Brazil’s Minister of Environment, Marina Silva, said she expects a reduction in the deforestation ...

Brazil Didn’t Make the US Short List of Favorites for a UN Seat

Undersecretary of State for Political Affairs Nicholas Burns said today that the United States ...

US Rate Hike Cools Brazilian Market

Brazilian markets declined, yesterday, ahead of a possible U.S. interest rate hike on Wednesday. ...