The Bovespa stock index fluctuated as concern that economic growth is slowing in the U.S., Brazil’s second-biggest trade partner, offset a rally by steelmakers.
Usinas Siderurgicas de Minas Gerais SA, Brazil’s second- biggest steelmaker, jumped after Sumitomo Corp. said it will buy as much as $1.93 billion of shares in a unit of the company. Vivo Participacoes SA, Brazil’s biggest wireless carrier, led telecommunications declines after an international rival signaled it’s seeking to expand its presence in the country. Marfrig Alimentos SA, Latin America’s second-largest beef producer, fell the most in three weeks.
The Bovespa rose 0.4 percent to 69,077.10 at 12:59 p.m. New York time, after falling as much as 0.5 percent. Thirty-four stocks declined on the index while 30 gained. The real strengthened 0.2 percent to 1.7068 per dollar.
“It’s a slowdown that for now doesn’t indicate it will be another recession,” said Augusto Lange, who helps manage 1.25 billion reais ($732.3 million) at Neo Gestao de Recursos in Sao Paulo.
Brazil’s benchmark equity gauge rose yesterday to the highest level since April as an increase in Chinese industrial profits boosted the outlook for economic growth in Brazil’s largest trading partner. The Bovespa is headed to the biggest quarterly advance in a year, rising 13 percent since June 30. It’s set to post a 6 percent monthly gain, the biggest since July.
Jobs and Wages
Mounting pessimism over the outlook for jobs and wages caused American consumers to lose confidence in September, indicating spending will take time to recover.
The Conference Board’s sentiment index declined to 48.5 this month, lower than the median forecast of economists surveyed by Bloomberg News and the weakest level since February, according to figures from the New York-based private research group today. Another report showed home prices cooled, hurt by a slump in sales following the end of a government tax incentive.
Sumitomo, a Japanese trading company, will buy as much as a 30 percent stake in an iron-ore unit of Brazil’s Usiminas, according to a statement to the Tokyo Stock Exchange. Usiminas agreed in June to sell the holding in Mineracao Usiminas SA to Sumitomo.
Usiminas Gains
Usiminas gained 2.3 percent to 23.01 reais while Gerdau SA, Latin America’s largest steelmaker, rose 1.9 percent to 23.33 reais.
NII Holdings Inc., a U.S. company that operates in Latin America under the Nextel brand, is ready to win a Brazilian government auction of licenses for third-generation mobile phones, said Sergio Chaia, chief executive officer of Nextel in Brazil. The firm wants to enter the segment to expand faster in Brazil, Chaia said at an event in Sao Paulo today.
Vivo sank 1.6 percent to 46.66 reais while Telecomunicacoes de Sao Paulo SA, Telefonica SA’s fixed-line Brazil unit known as Telesp, lost 1.4 percent to 41.13 reais.
Marfrig fell the most intraday since Sept. 8, dropping 2.7 percent to 17.45 reais.
The Bovespa index trades for 12.9 times analysts’ earnings estimates, compared with 12.6 times for the MSCI Emerging Markets Index of 21 developing nations’ stocks and 15.5 times for Mexico’s IPC index, according to weekly data compiled by Bloomberg. The Bovespa trades at 15.1 times the reported profits of its companies.
To contact the reporter on this story: Alexander Cuadros in Sao Paulo at acuadros@bloomberg.net
To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net
http://jodnet.blogspot.com
Usinas Siderurgicas de Minas Gerais SA, Brazil’s second- biggest steelmaker, jumped after Sumitomo Corp. said it will buy as much as $1.93 billion of shares in a unit of the company. Vivo Participacoes SA, Brazil’s biggest wireless carrier, led telecommunications declines after an international rival signaled it’s seeking to expand its presence in the country. Marfrig Alimentos SA, Latin America’s second-largest beef producer, fell the most in three weeks.
The Bovespa rose 0.4 percent to 69,077.10 at 12:59 p.m. New York time, after falling as much as 0.5 percent. Thirty-four stocks declined on the index while 30 gained. The real strengthened 0.2 percent to 1.7068 per dollar.
“It’s a slowdown that for now doesn’t indicate it will be another recession,” said Augusto Lange, who helps manage 1.25 billion reais ($732.3 million) at Neo Gestao de Recursos in Sao Paulo.
Brazil’s benchmark equity gauge rose yesterday to the highest level since April as an increase in Chinese industrial profits boosted the outlook for economic growth in Brazil’s largest trading partner. The Bovespa is headed to the biggest quarterly advance in a year, rising 13 percent since June 30. It’s set to post a 6 percent monthly gain, the biggest since July.
Jobs and Wages
Mounting pessimism over the outlook for jobs and wages caused American consumers to lose confidence in September, indicating spending will take time to recover.
The Conference Board’s sentiment index declined to 48.5 this month, lower than the median forecast of economists surveyed by Bloomberg News and the weakest level since February, according to figures from the New York-based private research group today. Another report showed home prices cooled, hurt by a slump in sales following the end of a government tax incentive.
Sumitomo, a Japanese trading company, will buy as much as a 30 percent stake in an iron-ore unit of Brazil’s Usiminas, according to a statement to the Tokyo Stock Exchange. Usiminas agreed in June to sell the holding in Mineracao Usiminas SA to Sumitomo.
Usiminas Gains
Usiminas gained 2.3 percent to 23.01 reais while Gerdau SA, Latin America’s largest steelmaker, rose 1.9 percent to 23.33 reais.
NII Holdings Inc., a U.S. company that operates in Latin America under the Nextel brand, is ready to win a Brazilian government auction of licenses for third-generation mobile phones, said Sergio Chaia, chief executive officer of Nextel in Brazil. The firm wants to enter the segment to expand faster in Brazil, Chaia said at an event in Sao Paulo today.
Vivo sank 1.6 percent to 46.66 reais while Telecomunicacoes de Sao Paulo SA, Telefonica SA’s fixed-line Brazil unit known as Telesp, lost 1.4 percent to 41.13 reais.
Marfrig fell the most intraday since Sept. 8, dropping 2.7 percent to 17.45 reais.
The Bovespa index trades for 12.9 times analysts’ earnings estimates, compared with 12.6 times for the MSCI Emerging Markets Index of 21 developing nations’ stocks and 15.5 times for Mexico’s IPC index, according to weekly data compiled by Bloomberg. The Bovespa trades at 15.1 times the reported profits of its companies.
To contact the reporter on this story: Alexander Cuadros in Sao Paulo at acuadros@bloomberg.net
To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net
http://jodnet.blogspot.com
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