• Categories
  • Archives

Bad News from US Means Good News for Brazilian Stocks

Latin American shares moved higher today as Mexico’s central bank left interest rates unchanged, Brazilian shares recouped early losses and Argentina followed the positive sentiment higher as worries about U.S. interest rates and inflation took a back seat to local developments.

Brazil’s Bovespa Index leapt 344.45 points, or 1.00%. Mexico’s benchmark Bolsa surged 357.33 points, or 1.96%, while Argentina’s Merval Index gained 11.4 points, or 0.72%.

Brazilian stocks wiped out early losses to register gains after falling 1% at the start of trade in São Paulo. Investors eyed economic data from the U.S., which showed orders for new U.S.-made durable goods fell a more-than-expected 0.3% in May. It marked the second decline in a row, with orders now down 3.5% since a peak in December.

Shares in Brazil’s largest bank, state-controlled Banco do Brasil, were down 3.6% in the run-up to a large secondary share offering next week.

Banco do Brasil is in the midst of an operation to sell a total of 45.4 million common shares via a secondary offering, and will set a price Monday.

Mexico’s stocks moved higher as the Bank of Mexico left interest rates unchanged at its policy meeting, encouraging investors worried about monetary tightening trends throughout the worlds leading economies. The bank of Mexico left the overnight rate at a minimum 7% and reiterated that its recent easing cycle is over for now.

The decision was widely expected, coming nine days before presidential elections and amid growing concern about rising global interest rates. The U.S. Federal Reserve is expected to raise rates next week, and the U.S. market is pricing in another rate hike in August.

Mexico holds general elections July 2 to elect a new president and Congress. Separate election polls published Friday by Mexico’s Reforma and El Universal newspapers gave leftist presidential candidate Andrés Manuel Lopez Obrador a narrow lead over his conservative rival Felipe Calderon.

Argentine issues tracked Mexico and Brazil higher on today’s session. A rally in the shares of market heavyweight Tenaris bolstered the key Merval Index.

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Your email address will not be published.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

Brazilian President in London as Ambassador for 2014 World Cup and 2016 Olympics

Brazilian president Dilma Rousseff travels to London this Tuesday afternoon where she will  have ...

18 Leaders Have Been Killed in Parí¡, Brazil, Since US Nun’s Murder in 2005

On 12 February 2005, Sister Dorothy Stang was assassinated for defending the rights of ...

Brazilian Indians Vow Bloodbath If Evicted from Their Land

As Brazil celebrates Indian Day on Wednesday, April 19, Guarani Indians facing eviction from ...

Brazil Cabinet: The Fall of a Dreamer and a Doer

Following his resignation, Brazil’s former Education Minister Cristovam Buarque, claimed he had been isolated ...

An Update on Brazil’s Vote-for-Pay Scandal

Since the middle of last year the Brazilian political scene has been mostly dominated ...

Brazil’s Elections and the Power of the Status Quo

Brazil’s presidential election campaign, already marked by tragedy, continues with high drama after the ...

Here’s Why for Some Intervention Is the Only Way Out in Brasília

It was an unprecedented decision in Brazil. Late in the afternoon of February 11, ...

ILO Cites Brazil and China as Models in Reducing Child Labor

According to a report issued by the International Labor Organization, between 1992 and 2004 ...

A Brazilian Blockbuster

Hollywood hunk and soap opera star in NBC’s Days of Our Lives as Officer ...

Porno with redeeming value

CDs or Books by Keyword, Title or Author By "What’s the name of what ...