Thursday, May 25, 4:45 PM EDT (Thomson Financial): Latin American
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 that the government posted a record
primary budget surplus in April of 19.43 billion reals, up from 13.19
billion reals 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
Participacoes 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 Eletrobras 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%.
-- Paul.Davee@thomson.com; Thomson Financial Corporate Services
This is Thomson Financial Corporate Services Latin American Commentary.
The information herein is believed to be true and accurate, we take no
responsibility for inaccurate information and reserve the right to update
our reports. If you have any questions please e-mail James Sang at
james.sang@tfn.com or call 646.822.6233. For more information about Thomson
Financial, please visit our web site at http://www.thomsonfinancial.com.
SOURCE Thomson Financial Corporate Group
back to top
