• 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Your email address will not be published.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

In Surprise Move, Brazil Decides to Pay Off Its US$ 15 Billion IMF Debt

Brazil announced its intention to make an early repayment of its entire outstanding obligations ...

Brazilian Inflation Rises 3.59% This Year. Food Prices Down.

Brazil’s rate of inflation in August, as measured by the Broad Consumer Price Index ...

Brazilians Read 1.8 Books Per Year. There Is a Plan to Improve This.

The Brazilian National Book and Reading Plan (PNLL), which was launched last month by ...

Time Again for Couromoda, When Brazil Becomes World’s Leather Capital

The 34th International Shoes, Sportsgoods and Leathergoods Fair (Couromoda), is going to bring together ...

China Impressed with Brazilian Beef, Says Vice President

China has approved Brazilian sanitary conditions for meat production, as well as soy planting ...

Brazilian Building Companies Find Opportunities in Lebanon and Egypt

The government of Lebanon wants Brazil to participate in their construction projects. The Lebanese ...

Brazil’s Oscar Niemeyer, 98, Still Busy at Drawing Board

It could be just one more university in the Arab world. As in various ...

Brazil’s Vivo Teams Up With ReCellular to Save Cell Phones from Trash

US-based ReCellular, an international collector, reseller and recycler of used wireless cell phones and ...

Vital Attraction

Drawn to movies since childhood it seemed inevitable that Mineiro Elton Eloin would end ...

Brazil Posts Again a Trade Deficit

Brazilian exports totaled US$ 3,228 billion and imports, US$ 3,387 billion, resulting in a ...