Polls Give Lula Lead But Don’t Help Brazil’s Market

    Latin American stocks dropped, with Brazilian shares posting the biggest losses on continued worries about the impact of rising oil prices on the inflation and interest-rate outlooks at home and abroad.

    Brazil’s Bovespa Index sank 573.54 points, or 1.49%. Mexico’s benchmark Bolsa Index fell 83.20 points, or 0.43%, while Argentina’s Merval Index declined 13.63 points, or 0.74%.

    Brazilian stocks dropped, extending the previous day’s sell-off amid continued concerns about rising U.S. interest rates and oil prices. Oil prices have posted sizable gains in recent sessions on strong global demand and concerns about potential supply disruptions due to uprisings in Nigeria and a standoff between the U.S. and Iran over its nuclear program.

    Moreover investors fear that rising global energy costs will fuel inflation, forcing the U.S. Federal Reserve to continue raising interest rates and potentially impeding the Brazilian central banks move to loosen its monetary policy.

    On the political front, the Sensus group released a poll today showing Brazilian President Lula with 37.5% of voter preferences, against only 20.6% for Social Democratic Party rival Geraldo Alckmin and 15% for possible Brazilian Democratic Movement candidate Anthony Garotinho. President Lula’s lead over his opponents was weaker than in a February Sensus poll, but his level of approval rose slightly.

    Elsewhere, Brazil’s largest telecom company, Telemar, was in focus amid mounting speculation that Portugal Telecom will make an offer for a stake in the company.

    Shares of paper and pulp company Votorantim were active after a major investment bank upgraded the stock to overweight, saying "pulp and paper markets look to remain tighter for longer than we previously anticipated."

    In economic news, industrial employment in Sao Paulo state rose 0.29%, or by a net 6,038 jobs, in March from February.

    Mexican shares moved lower in pre-holiday trading and on low volume, as local markets will be closed Thursday and Friday ahead of the Easter holiday. Meanwhile, U.S. weakness was also a factor, as continued strength in crude oil prices and concerns regarding Iran and Nigeria pressured the market.

    Meanwhile, a major investment bank raised its price target on homebuilder Ara to 59.2 pesos from 56 pesos, as the firm’s planned dividend is expected to "boost profitability ratios." Ara shares jumped higher on the day.

    Within the steel group, Notimex, the government news agency, announced that strikers at Mittal Steel’s plant in the Mexican port of Lazaro Cardenas agreed to return to work today. The local chapter of the National Mining and Metal Workers Union decided to end the walkout when the firm recognized Napoleon Gomez Urrutia as national leader of the union. Meanwhile, copper miner Grupo Mexico declared force majeure earlier this Tuesday, April 11, on select deliveries due to the strike at its La Caridad copper mine.

    Home construction firm Geo announced that it expects to post first-quarter net profit gains of between 23.1% and 23.4%, compared to the year-earlier period, with revenue growth surpassing 20%.

    Turning to telecom news, Telmex and America Movil asked for approval from Venezuela to bid for the remaining shares of CANTV. Before a decision can be made, CNV, Venezuela’s securities regulator, will review the proposal, while telecom regulator Conatel anti-monopoly and unit Precompetencia must give a favorable ruling.

    Argentine shares witnessed some profit-taking today, after the key Merval Index reached a fresh record high yesterday. Similar to Mexico, pre-holiday trading also played a role.

    Thomson Financial – www.thomsonfinancial.com

    Tags:

    • Show Comments (1)

    • Guest

      SSA
      Four more years of populism which is the consequence of letting the rabble have unlimited direct votes, and that is anywhere in the world.

      Lula’s accomplishments are mighty;
      1. Crime and violence is worse then ever.

      2. Adjusting cost of living, the buying power of the average person today is far less then before

      3. Slogans such as zero fome are nothing more then flattulance for a problem which really is not a problem, unless you have delusions of grandeur to be the next Ghandi, Nasser, Tito and Castro rolled into one.

      4. A tourist campaign that prides it self in withc hunting and moralism in order to satisfy the UN and the NGO interlopers!!!

      Parabens, Well Done!

    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 Steps Up Search for Slave Workers

    In Brazil, beginning this week, the searches for enslaved laborers in the states of ...

    Brazil to Reward Exporters with Tax Breaks

    The Brazilian Ministry of Development, Industry and Foreign Trade is working on a project ...

    Brazilian President Ready for 5th African Tour

    Brazilian President Luiz Inácio Lula da Silva will make an official visit to Algeria ...

    Qatar gas well

    Burned by Bolivia Brazil Goes to Africa and Middle East Looking for Gas

    Petrobras wants to become a global operator in the liquefied natural gas (LNG) area. ...

    Brazil's aircraft maker Embraer

    Brazil’s Embraer Betting Arab Market Will Take Off

    After successful participation in Dubai Air Show, a trade fair for the aviation sector ...

    Labneh, an Arab Cheese Conquering Brazil

    A cheese with a particular taste, similar to ricotta, but slightly more tart, is ...

    Embraer Responsible for 4% of Brazil’s Trade Balance

    The Brazilian Aviation Company – Embraer – announced Wednesday, July 27, the delivery of ...

    Brazilian emperor Dom Pedro depicted as sphinx

    The Presence of Ancient Egypt in the Brazilian Press

    Pyramids, Sphinxes and pharaohs. These and other elements of Ancient Egypt are included in ...

    Argentina Will Probe Charges That Its Military Smuggled Weapons to Brazil

    The Argentinean government will help Brazil in the clarification of accusations concerning the supposed ...

    The Three Musketeers: Brazil, India and South Africa

    Earlier this month, entrepreneurs from Brazil, South Africa, and India founded the Trilateral Business ...