Brazil Markets Slow Down After Record Highs

    Brazilian markets weakened on profit taking following recent gains. Yesterday, Brazilian equities set new record closing highs. Profit taking overtook enthusiasm regarding a further decline in global oil prices.

    Crude oil prices continued sharply lower to well below US$ 44 a barrel, following yesterday’s unexpectedly robust U.S. inventory data, as well as indications OPEC will likely keep production at current levels when it meets next week.


    Brazil’s benchmark Bovespa Index shed 34.30 points, or 0.14%. Brazilian stocks ebbed, as investors logged profits following a new all- time high in the previous session, despite the impact of continued declines in world oil prices.


    The fall in oil prices pressured shares of Petrobras, which generally follows the trends in international oil markets for its domestic fuel prices.


    That stock had risen notably in recent session. Analysts commented that recent positive macroeconomic news in Brazil brightens the medium-term outlook for equities.


    Following recent weakness in the U.S. dollar, investors focused on comments from European Central Bank President Jean-Claude Trichet for signs of a potential currency intervention scheme.


    However, the ECB president declined to comment on the implications of the rising euro, other than to note that, “recent moves were unwelcome.”


    Brazilian airline Gol continued to soar after Petrobras said it cut its price for jet fuel by 2.2% on Wednesday.


    Still, Varig, Viação Aérea Riograndense, was not so lucky, after the new head of Brazil’s National Development Bank said the government will not provide direct loans to rescue the debt-laden airline from 6.6 billion reais of debt, but may finance a group that would take over the carrier.


    Thomson Financial Corporate Group
    www.thomsonfinancial.com


    PRNewswire

    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    Your email address will not be published.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

    Ghanaians Resort to Shrink and Prayers While Getting Ready for Brazil

    Defending champion Brazil is bracing for a tricky match against Ghana in the second ...

    Zelaya at Brazilian embassy

    Brazilian Days of Honduras’s Fallen President Zelaya Are Almost Over

    Porfirio Lobo, Honduras’s president elect, said that as soon as he takes office, January ...

    Brazil Serious on Delivering the Internet to Everyone

    Brazil’s Minister of Communications, EunÀ­cio Oliveira, participated, yesterday, in the opening of the 1st ...

    Brazil Needs More Imports If It Wishes to Export More

    The president of the Foreign Trade Studies Center Foundation (Funcex), Roberto Gianetti da Fonseca, ...

    EDP Brazil

    Portugal Firm EDP to Invest US$ 344 Million in Brazilian Energy

    Company Energias de Portugal (EDP) wants to invest 270 million euros (US$ 344 million) ...

    Brazil, a Global Deadbeat

    This is not a new story. Brazil has been here before. International organizations in ...

    Arrested in Brazil Woman Wanted in Death of Lebanon’s Ex-Premier

    A fugitive bank executive wanted for questioning in the U.N. probe of the assassination ...

    Rio Tinto Corumbá operation in Brazil

    World Slowdown Puts a Freeze on Rio Tinto’s Iron Ore Expansion in Brazil

    The collapse of commodity prices and demand has led giant Australian-UK minerals corporation Rio ...

    Aeolian farm in Paraná state, Brazil

    Brazil’s Petrobras US$ 112 Billion Investment Includes Wind Energy and Biofuel

    Petrobras, the Brazilian government-controlled oil company, plans to invest US$ 18.2 billion between 2008 ...