Bargain Hunters Reverse Brazil’s Stock Market Slump

    Brazilian stocks rocketed higher, as investors went bargain hunting following a recent sell-off on concerns about rising U.S. inflation and interest rates.

    Brazilian shares were further boosted by upbeat local economic data, while indications of U.S. economic strength lent additional support to Mexican issues. Argentina’s market was closed for a national holiday.

    Brazil’s Bovespa Index rallied 1776.70 points, or 4.96%. Mexico’s benchmark Bolsa Index leapt 600.14 points, or 3.19%.

    Brazilian stocks rocketed higher, as investors snapped up recently beaten down shares while cheering signs of strength in the local economy.

    Brazil’s central bank said today, May 25, that the government posted a record primary budget surplus in April of 19.43 billion reais, up from 13.19 billion reais in March.

    Also, the Brazilian Census Bureau (IBGE) reported today that Brazil’s official jobless rate in April was unchanged from March’s rate of 10.4%. Economists had expected a rate between 10.0% and 10.6%.

    In corporate news, long-distance telephone carrier Embratel Participações SA was in focus following news that the company’s parent, Telefonos de Mexico SA, will maintain its cash tender offer for outstanding shares until June 7.

    Meanwhile, a major investment bank upgraded shares in electric power firm Eletrobrás to "Neutral 2" from "Reduce 2," citing a more favorable valuation.

    Elsewhere, Mexican shares jumped, as investors went in search of bargains following a six-day losing streak on concerns about rising U.S. interest rates.

    Signs of strength in the economy of Mexico’s biggest trading partner also lent support to the bolsa. The U.S. Commerce Department reported today that U.S. gross domestic product grew at a 5.3% annual rate in the first quarter, up from an initial estimate of 4.8%.

    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    Your email address will not be published.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 Benefits from US$ 22 Million Gates Grant for Hookworm Vaccine

    The Albert B. Sabin Vaccine Institute, a leader in promoting the development and use ...

    Buchada de Bode and a Whole Lot More of Obscure and Tasty Brazilian Food

    You most certainly heard of, or even tasted, churrasco (barbecue) and feijoada, a complex ...

    Brazilian Lula and British Brown

    Brazil’s Lula Finds Culprit for Global Crisis: White People with Blue Eyes

    Brazilian President Luiz Inácio Lula da Silva and British Prime Minister Gordon Brown agreed ...

    Portugal’s RTP Beams Programs Via Satellite Directly into Brazilians’ Homes

    RTP (Radio e Televisão de Portugal), the Portuguese national public service broadcaster announced that ...

    Brazilian Volkswagen and Embraer Star at Algiers International Fair

    The 39th edition of Algiers International Fair, scheduled to begin today, June 1st, in ...

    Brazil Finds New Huge Oilfield, Possibly World’s Third Largest

    Brazil keeps finding huge new oil fields. The director general of Brazil's National Petroleum, ...

    Serra’s Respite

    Ciro Gomes’ declining popularity shows that Serra’s attacks on his character have hit home. ...

    Brazilian Franchises Show Their Stuff in LA’s Franchise Expo

    Brazilian companies are coming to Los Angeles for the West Coast Franchise Expo-2006, which ...

    Bean plantation in Rio Grande do Sul

    Asia’s Need for Food Gives Brazil’s Rio Grande do Sul a Boost

    The southernmost Brazilian state of Rio Grande do Sul saw its exports grow 22% ...