Brazilian equities surged, as a plunge in global oil prices and strong corporate earnings releases bolstered shares. Brazilian shares tracked strength in U.S. stocks, as the Dow closed above 10,000.
Brazil’s benchmark Bovespa Index climbed 321.87 points. Brazilian issues rose, alongside gains in the U.S market and lower oil prices.
Investors were awaiting tomorrow’s release of the central bank’s minutes from its monetary policy meeting last week for clues on the pace of future rate hikes.
At the recent meeting, the bank raised Brazil’s benchmark Selic interest rate by a greater-than-anticipated 50 basis points to 16.75% to combat rising inflation expectations.
However, in related news, São Paulo consumer inflation accelerated 0.53% over the four weeks ended October 23 due to rising food, transport and housing prices, compared with a 0.38% rise over the four weeks ended October 14. Analysts estimated a gain of 0.35% to 0.51% in late October.
Turning to corporate news, stainless steel maker Acesita SA saw its third-quarter net profit leap to 231.1 million reais from 8.4 million reais in the year-earlier period.
The company’s chief financial officer noted that the spike was due to Acesita’s efforts to restructure operations and position itself to make the most of currently high steel prices at home and abroad. Still, the 48% increase in revenue to 824.2 million reals fell shy of some analyst forecasts.
That stock rose. Separately, flat-steel maker Companhia Siderúrgica Nacional’s board approved a plan to buy back up to 6.357 million shares at market prices, starting November 12 and extending for three months.
Thomson Financial Corporate Group
http://www.thomsonfinancial.com/
PRNewswire
