Mass Killings by Drug Gang Don’t Worry Brazilian Investors

    Latin American stocks tumbled as investors continued to take profits amid worries about rising global inflation and U.S. interest rates. Brazilian shares were further pressured by some lackluster earnings news from local corporate giants.

    Brazil’s Bovespa Index dropped 940.52 points, or 2.34%. Mexico’s benchmark Bolsa Index fell 432.77 points, or 2.05%, while Argentina’s Merval Index lost 54.93 points, or 3.04%.

    Brazilian stocks sank, as investors digested a mixed batch of local earnings reports and continued to fret over the outlook for U.S. interest rates.

    Attacks by a drug gang that left 91 dead, half of them policemen, didn’t seem to have contributed to the market downturn. Fear of new attacks, however, shortened the period the Bovespa, the São Paulo stock market, kept open, this Monday, May 15.

    On the earnings front, aircraft maker Embraer said late Friday, May 12, that its first-quarter net profit plunged to 86.9 million reais from 233.8 million reais a year earlier, missing expectations. Results were hurt by an appreciation of the real and a drop in deliveries.

    Meanwhile, oil giant Petrobras late Friday said its first-quarter net profit rose 33% from a year ago to 6.68 billion reais but missed analyst estimates. Results were hurt in part by higher taxes.

    Banco do Brasil SA posted a record first quarter net profit of 2.343 billion reais, up sharply from 965 million reais a year ago and above market forecasts. Results benefited from growth in the bank’s client base.

    Elsewhere, Mexican shares dropped for a fourth straight session on continued profit taking amid worries that U.S. interest rates will rise higher than initially expected.

    Before the recent bout of profit taking Mexico’s bolsa had risen strongly on optimism about local economic and earnings growth. In a sign the economy remains on solid footing, the Finance Ministry reported today that Mexico’s industrial production surged 9.7% in March from a year earlier.

    Argentine issues followed the region’s descent into the red amid profit taking and concerns about rising U.S. interest rates and global inflation.

    On an up note, a major investment bank upgraded Argentina to "outperform" from "marketperform." "We have been surprised at the staying power of Argentina’s recovery, and believe that the economy still has significant impetus, as long as commodity prices remain high," the bank said.

    Thomson Financial – 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

    Brazil's Couromoda

    1000 Exhibitors, Buyers from 70 Countries. Couromoda Is on

    The 37th edition of the Couromoda, which begins this Monday, January 18, at the ...

    LETTERS

    Tieta, Teresa Batista, Gabriela, Quincas Berro Dágua, Vadinho and Dona Flor. For many of ...

    Brazil: A Truckload of Trouble for Politician Maluf

    A case was put against failed candidate Paulo Maluf (PP) by prosecutors in front ...

    Siemens of Brazil Hydrogenerator

    Weak Dollar Won’t Harm the Bottom Line, Says Brazil

    The minutes of the last meeting of the Brazilian Monetary Policy Committee (Copom) make ...

    A crowded subway in Brazil

    Brazil Comes in 89th Place Among 134 Countries in Forbes’ Best Countries for Business

    Brazil and the other full members of Mercosur – Argentina, Paraguay and Uruguay – ...

    José Riva

    Brazil Judge Forbids Two Bloggers From Reporting on Justice’s Fraud Case

    Enock Cavalcanti and Adriana Vandoni two bloggers, from Mato Grosso state, in the Brazilian ...

    33% of 23,000 Brazilians Deported Are Women, Many Victims of Sex Rings

    A large portion of the Brazilian women deported from or refused permission to enter ...

    Xavier, manager at Coopercuc by Isaura Daniel

    Brazil’s Backlands Discover Capitalism

    Several inhabitants in the region of Simplício Mendes, a municipality in the northeastern Brazilian ...

    Brazil Asks for Arrest of Woman Who Murdered American She Met on the Internet

    The Brazilian police have indicted a Brazilian woman for kidnapping and then killing an ...

    Hearing the Book

    CDs or Books by Keyword, Title or Author By Brazzil Magazine As the year ...