Foreign Bulls Stir Brazil’s Market

    Brazilian  market strengthened this Friday, January 14, amid a batch of economic news, with gains on Wall  Street driving enthusiasm for emerging market investments.

    The U.S. market  was lifted by as a drop in wholesale prices, which dampened concerns  about inflation and more aggressive interest rate hikes by the U.S.  Federal Reserve.


    Brazil’s benchmark Bovespa Index rose 118.39 points, or 0.48%. Brazilian equities advanced, as bullish foreign investors entered the  market.


    Local inflation data was in focus. The country’s Broad Consumer  Price Index, the IPCA, advanced 7.60% in 2004, the slowest pace in  three years and within government-set inflation targets for the first time  since 2000.


    However, the IPCA rose 0.86% in December from 0.69% in  November, suggesting Brazil’s Central Bank will likely hike interest rates  at its monthly meeting scheduled for next week.


    Most economists already  expect the bank, which uses the IPCA to guide monetary policy, to boost  the benchmark Selic interest rate by about half a percentage point to  an annual 18.25%.


    Traders commented that investors worry higher rates  could restrict economic growth and weigh on corporate results.


    Mining and steel shares again experienced robust buying activity.  Companhia Vale do Rio Doce climbed, as investors foresee the company  announcing a significant increase in iron ore prices any day now.


    Additionally, AmBev stated that fourth-quarter Brazilian beer sales  accelerated by an impressive 14% to 18.42 million hectoliters on the year.  Brazil is the world’s No. 4 beer market.


    Amid research notes, an influential brokerage initiated coverage on  Brazilian electricity utility CPFL Energia at a “peer perform” rating and  a price target of US$ 25 per American Depositary Receipt.


    The analyst  said CPFL’s stock appears fully valued and that it considers an upside of  20% of its target price “moderate” for Brazil.


    Thomson Financial Corporate Group
    www.thomsonfinancial.com


    PRNewswire

    Tags:

    • Show Comments (1)

    • Guest

      THANKS!!!

    Your email address will not be published.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 Exports Zoom Over US$ 100 Billion, a 22% Growth

    Brazilian exports have already exceeded US$ 100 billion this year. Up to the second ...

    Brazilian president at Scania 50th Birthday Celebration

    Brazilian President Shows Up to Celebrate Scania Brazil’s 50th Birthday

    Brazilian president Luiz Inácio Lula da Silva was among the guests and authorities who ...

    Brazil: US Firm Acquires Jockey Clubs’ Broadcast Signals

    Carnegie Cooke and Co., Inc. announced the acquisition of the domestic racing broadcast signal ...

    Brazil Starts Enriching Own Uranium. Something Iran Wants Too.

    Brazil has inaugurated a uranium enrichment center, capable of producing the kind of nuclear ...

    Rebelo’s Turn

    Some have dismissed his initiative as just "the paranoia of the Brazilian left-wingers", but ...

    Brazil Rides Coattails of World Cup Players to Sell Its Goods

    The Brazilian government is taking advantage of all the opportunities at the World Soccer ...

    Brazilian president Michel Temer

    Revenge of the Right in Brazil?

    About a month ago, when it became apparent that the center-right opposition in Brazil ...

    Elections

    With 20 Parties, Everyone Gets Something from Brazil Municipal Elections

    With more than 20 official political parties, election results in Brazil are always mixed. ...

    Hydrogen bus

    Brazil’s First Hydrogen Bus Enters Service in Sí£o Paulo

    Brazil sees this as the starting point in a quest for cleaner public transport ...

    Brazil Surplus Reaches US$ 29 Billion for the Year

    Last week, Brazil exported US$ 2.931 billion and imported US$ 2.193 billion, which resulted ...