Standard & Poor Sees a ‘Solid’ 2005 for Brazil

    Brazilian stocks rose, ahead of what are expected to be solid fourth-quarter earnings announcements in the coming weeks. Still, investors remained somewhat cautious in anticipation of the release of the minutes from the Brazilian central bank’s most recent monetary policy meeting.

    Brazil’s benchmark Bovespa Index strengthened 379.35 points, or 1.59%. Brazilian stocks strengthened, amid gains in the power and metals sectors.


    Investors are looking cautiously ahead to minutes from the Brazilian central bank’s latest monetary policy meeting due later in the week. The bank is expected to make hawkish comments regarding inflation and interest rates after tightening monetary policy in January for the fifth straight month.


    Still, investors are awaiting fourth-quarter earnings reports in the coming weeks that are anticipated to be generally positive. Brazil’s economy leapt in the second half of 2004, and local firms are now reaping the benefits of that expansion.


    Additionally, Brazilian equities were supported by a Standard & Poor’s report that said the country’s macroeconomic prospects for 2005 look “solid.”


    Shares of Brazilian electric power utility Copel soared, after the firm announced plans to raise prices by an average of 5% from February 1. The price increase reduces some of the discount awarded to customers that pay their bills on time.


    Also, CVRD continued to rise, following its acknowledgement last week that the mining giant is seeking a price hike from clients of up to 90% for iron ore this year.


    Iron ore prices are negotiated every year between major producers and their foremost steelmaking clients. Strong Chinese demand has lifted iron ore prices, which surged nearly 19% in 2004 after a 10% rise in 2003.


    Thomson Financial Corporate Group
    www.thomsonfinancial.com


    PRNewswire

    Tags:

    • Show Comments (1)

    • Guest

      baba
      awsome thanks for the information DUDE

    Your email address will not be published.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

    Brazilian belly dancers

    A Brazilian Approach to Belly Dancing Clothing

    Five years ago, ballet dancer and belly dance teacher Adriana Almeida was looking for ...

    FIFA's Jerome Valcke

    FIFA Complains About Brazil’s Crime, Lack of Hotels, Buses and Good Airports

    Jerome Valcke, FIFA’s general secretary, has warned Brazil of the increasing crime rate in ...

    Brazilian Industry Raises Brazil’s 2006 GDP Growth Estimate to 3.7%

    The Brazilian National Confederation of Industry (CNI) raised its estimate for this year’s growth ...

    Brazil’s Central Bank Worried About Higher than Expected Inflation

    In the minutes published today of the Central Bank Monetary Policy Committee’s (COPOM) most ...

    Itaipu plant

    Brazil Industry Enters Brazil-Uruguay Dispute over Itaipu Hydroelectric Plant

    At the heart of a debate this Wednesday, May 27, between Brazil's main industrial ...

    Favela in Rio, part of the Alemão complex

    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 ...

    Chinese in Brazil to See How Alcohol Fuel is Made

    A Chinese mission will arrive in Brazil on Monday, April 11, to see the ...

    Russian president Dmitry Medvedev

    To US Medvedev’s Short Tour of Brazil and LatAm Spells Heartburn

    After attending the Asia-Pacific Economic Cooperation (APEC) summit in Lima on November 21-22, Russian ...

    Brazil: World’s Main Iron Ore Producer Raises Prices by 71.5%

    Brazil’s Companhia Vale do Rio Doce (CVRD), the world’s largest iron ore producer, concluded ...

    Best-seller Books, Plays and Movies

    By Brazzil Magazine Alice Através do Espelho (Alice Through the Looking Glass)—Based on Lewis ...