Confidence Fever Leads Market to Record High in Brazil

Brazilian stocks climbed, with markets establishing record closing highs. Confidence in the domestic economy and a surge in U.S. stocks provided momentum. Brazil’s benchmark Bovespa Index leapt 353.09 points, or 1.38%.

Brazil’s market rallied to a fresh record closing high, driven by overseas fund buying. Traders explained that overseas investors were already building their 2005 Brazilian portfolios, preferring the country’s blue-chip shares, with favorable prospects for Brazil’s economy next year attracting such investments.


On the economic front, renewed inflation concerns were largely overlooked. Brazil’s IBGE statistics institute reported that the IPCA Broad Consumer Price Index surged 0.84% in the month to December 15, accelerating from a 0.63% increase in the month to mid-November, primarily due to higher fuel prices.


Most economists had anticipated an increase nearer to 0.70%. The higher-than- estimated reading for the mid-month added to speculation Brazil’s Central Bank may opt to hike interest rates again in January.


Additionally, investors continue to await the publication of the Central Bank’s minutes from its December meeting. Traders expect equity trading volume to be light today and tomorrow ahead of the release early Thursday of the minutes.


Turning to corporate news, Petrobras said its board had approved the acquisition of Uruguayan natural gas distributor Conecta SA for US$ 3.2 million. It is the Brazilian state-oil company’s first activity in Uruguay, adding to Petrobras’ swift international expansion.


Thomson Financial Corporate Group
www.thomsonfinancial.com


PRNewswire

Tags:

Ads

You May Also Like

Indian Assassination Has Doubled in Brazil from 20 to 40 a Year

The extreme social exclusion and lack of government actions for truly protecting the rights ...

Air Canada Gets First of 45 Brazilian Embraer 190 Jets

Air Canada took delivery this Monday, December 12, of its first of 45 Embraer ...

After Ghana Brazil Takes its Agricultural Technology to South Korea

Embrapa, the Brazilian Agricultural Research Corporation, is on the road and crossing borders. Since ...

Brazil: Nobody Is Happy with the Prime

Even though it was expected by the majority of economists, Brazil’s productive sector didn’t ...

Japanese Banks Finance Brazil’s Petrobras Expansion

Petrobras, the Brazilian oil giant, and a consortium of international banks signed yesterday, May ...

Brazil to Spend US$ 1.7 Billion to Help Over 1 Million in Rio’s Slums

The Brazilian government will spend US$ 1.7 billion to bring running water and other ...

In Bahia, Brazil, Politicians Revenge Is Also Best Served Cold

Marco Prisco was getting tanned in the sunshine in the wonderful resort in Costa ...

A Plateful of Brazil for Trade Fair Giant Messe Frankfurt

Messe Frankfurt, one of the largest organizers of trade fairs in the world is ...

Brazil Increases Pork Exports by 32%. Russia Remains Main Market.

Brazilian pork exports yielded US$ 101.5 million during September, which represented an increase in ...

The Ball Game

CDs or Books by Keyword, Title or Author By John Miller Bus adventures continued ...