Latin American equities surged Friday and finished the week with gains as investors hoped for the U.S. Senate to pass President Barack Obama's economic stimulus package.
In Brazil, a higher-than-expected reading on monthly consumer prices bolstered market sentiment that an interest-rate cut is on its way. The benchmark Bovespa index rose 4% to 42,755.50, its best closing since Oct. 3.
Stocks also were higher in Mexico, Chile and Argentina.
All sectors traded in the black, with market heavyweight Petrobras (PBR) holding onto a 4.2% gain even as oil prices retreated. Crude for March delivery fell 2.4% to $40.17 a barrel on the New York Mercantile Exchange.
Shares of steel producers leaped, with prices for metals up. Companhia Vale do Rio Doce (RIO) climbed 3.6%, Gerdau (GGB) rose 4.2% and Usiminas tacked on 3.6%.
The market's view that the country's central bank will continue to cut rates when it meets in March strengthened Friday after the census bureau said January's IPCA consumer price index rose 0.48% due to seasonal factors and increases in food prices. The index rose 0.28% in December, vs. an expected increase of 0.41%.
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