Brazil Rebounds on Low Inflation News

    Brazilian shares turned around, following losses posted across the board yesterday. Investors are still anticipating Thursday’s, June 29, release of the U.S. Federal Reserve’s decision on interest rates. The Fed is widely expected to raise rates by 25 basis points.

    Brazil’s Bovespa Index jumped 458.92 points, or 1.34%. Mexico’s benchmark Bolsa rose 80.36 points, or 0.45%, while Argentina’s Merval Index rallied 33.53 points, or 2.10%.

    Brazilian issues bounced back today, as investors cheered a benign inflation report released by the Central Bank. For its second-quarter inflation report, the bank raised its estimate for the IPCA inflation index to 3.8% for 2006 from 3.7%. For 2007, the index was lifted to 4.2% from 3.9%.

    State-controlled Banco do Brasil rallied on its first day of trading on the Novo Mercado Mechanism on the Bovespa. Brazil’s largest bank completed the sale of 45.44 million common shares today, which raised 1.97 billion reais before migrating its shares to the Novo Mercado Mechanism.

    Turning to brokerage notes, a large investment house raised its earnings estimates for Petrobras and its Argentine unit Petrobras Energia, as the bank expects oil prices will continue to rise.

    Wireless provider Vivo was removed from a major investment bank’s focus list, partly due to disappointing earnings and guidance, and replaced with rival Tim Participações.

    In deal news, Colombia’s Interconnexion Electrica, or ISA, bought a controlling share in Brazil’s electric power transmission firm Cteep for 1.19 billion reais at an auction on the Bovespa.

    Mexican shares witnessed more muted gains on the day, as investors await Sunday’s tight presidential election. Trading volume was low and is expected to remain so until after the elections.

    Argentina bounced back from yesterday’s declines alongside broader regional gains. There were few economic or corporate reports to direct trading activity.

    Thomson Financial – www.thomsonfinancial.com

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    Ads

    You May Also Like

    Port of Santos, in São Paulo, Brazil

    For First Time Ever Brazil’s Exports Surpass US$ 250 Billion

    Brazilian exports exceeded for the first time, the mark of US$ 250 billion this ...

    Free Trade Starts at Home, Says Brazil

    Brazil’s Minister of Foreign Relations, Celso Amorim, said that the priority for Mercosur representatives ...

    Journalist Herzog was killed by torturers

    Lula Readies Truth Committee Bill to Punish Torturers from Brazil’s Dictatorship

    Brazil is seriously considering naming a "truth committee" a quarter of a century after ...

    Brazilian real

    Stocks Up: In One Day Brazil Wipes Out All July Losses

    In a single trading session the São Paulo Stock exchange, the Bovespa, practically recuperated ...

    Dollar

    Brazil Sees Silver Lining of World Crisis: a More Realistic Dollar

    Brazil's currency may not strengthen to previous levels because of ongoing global market turmoil ...

    Haiti Minister Learns Agricultural Practices in Brazil

    During his official visit to Brazil, the Minister of Agriculture of Haiti, Philippe Mathieu, ...

    Brazil Taking Steps to Help Solve Bolivian Crisis

    Brazilian President Luiz Inácio Lula da Silva said that the resignation request submitted by ...

    Brazil Starts the Engines of Biodiesel Program

    The Brazilian government is launching, today, the National Biodiesel Program, which will permit the ...

    Musical Fingers

    Pianist, composer and arranger Guilherme Vergueiro nowadays is better known for his work promoting ...

    Death in the Afternoon

    As Josimo approaches Augustinópolis he remembers his friends’ repeated warnings. “For God’s sake drive ...