Oil and Wall Street Make Brazil Market Bearish

    Latin American markets had a mixed session, due to discount-buying in Argentina and bullishness in Mexico, while traders booked profits in Brazil.

    Brazil’s benchmark Bovespa Index fell 131.28 points, or 0.40%, while Mexico’s benchmark Bolsa Index climbed 120.07 points, or 0.70%. Argentina’s Merval Index added 16.71 points, or 1.08%.

    Brazilian shares eased back on profit-taking, higher oil prices and weakness on Wall Street. In domestic data, the consumer price index for the São Paulo region rose 0.29% in November, from 0.63% the prior month, below forecasts ranging from 0.39% and 0.45%. Also, the trade surplus during the December 1-4 period totaled US$ 671 million, bringing the year-to-date total surplus to US$ 41.10 billion.

    In telecoms, the Vivo mobile group announced it would merge five of its holdings under one company. The news was seen as positive in the long term by analysts, according to media reports.

    Mexican issues, meanwhile, reached yet another record high, despite early profit-taking in the session. Optimism about the local economy has propelled the market higher lately.

    However, of note, in the U.S., the Institute for Supply Management’s index of non-manufacturing activity dropped to 58.5 in November from 60 in October. The reading missed analysts’ expectations of 59.

    In company news, Grupo Mexico was active on news it plans to invest US$ 600 million in a coal-fired power station to supply its own electricity needs.

    Also, Gruma rose on news of a share offering, whose proceeds may be invested in fixed assets and to pay down debt.

    Argentine stocks gained ground on bargain hunting after sustaining steep losses last week on news that Finance Minister Lavagna had been replaced.

    In economic news, the consumer price index jumped 1.2% in November, well above expectations for a 0.8% increase and the 0.8% gain registered the prior month. Also, auto production leapt 16.3% in November from the prior month, or 22.9% year-on-year.

    Thomson Financial Corporate Group – www.thomsonfinancial.com

    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    Your email address will not be published.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

    What Brazil Taught Me

    Don’t try to change Brazil, let Brazil change itself. Shine a little light in ...

    No Rupture Anymore. Brazil PT’s New Buzzword Is Stability

    In the biggest march ever organized by the powerful Movement of Landless Workers (MST), ...

    Oscar Ahoy

    Is Central do Brasil a long shot for the main Oscar? Michael Barker, Sony ...

    Trash send from UK to Brazil

    After Brazil Complaint Britain Decides to Take Back 1,000 Tons of Toxic Trash

    Brazil has announced that it will lodge a formal complaint with the World Trade ...

    Presidents Lula and Cristina Kirchner

    Brazil and Argentina Take First Step to Eliminate Dollar in Mercosur Trade

    Luiz Inácio Lula da Silva and Cristina Fernandez de Kirchner, presidents of Brazil and ...

    They Started in 1958 with Hay Mattresses. Today They Sell Upholstery in the US and Europe.

    The Arab countries were responsible for 40% of external sales of upholsteries from Americanflex, ...

    Chavez and Rousseff

    Brazil Ready to Send Cancer Experts to Venezuela to Help Chavez

    Dilma Rousseff, the president of Brazil, who had her own battle against cancer, offered ...

    Exports to US Rose 20%, But South America Is Brazil’s Main Market

    The countries of South America, rather than the United States, represent the main destiny ...

    Paulo Vanucchi

    After the Military Brass, Lula’s Minister Threatens to Resign over Human Rights

    Brazil’s Human Rights Minister, Paulo Vanucchi, threatened to resign if the Brazilian military are ...

    A sugarcane cutter in Brazil

    The Circus of Horrors Behind Brazil’s Biofuel Show

    Brazil is staking its claim as a great emerging power thanks to the leadership ...