|Day's Range||101,685.18 - 102,061.44|
|52 Week Range||70,134.00 - 102,617.00|
(Bloomberg) -- Brazil was the standout in JPMorgan’s re-rating of Latin American equity markets as the firm raised its year-end price target for the Ibovespa index while lowering forecasts for the rest of the region.Strategist Emy Shayo increased the 2019 target for the Brazilian benchmark to 108,000 from 105,900, implying about a 6% increase from current levels. The more optimistic projection is based on expectations that approval of social security reform will lead to more growth and lower risk. It comes as Brazil’s weaker-than-expected economic recovery has been leading to downward revisions to earnings estimates.“Our analysts are shrugging off Brazil growth concerns and focusing on policyimprovement driving a better investment environment,” Shayo, who has an overweight rating on the nation’s equities, said in a June 24 research note. “We are confident that the approval of the social security reform should quickly ignite growth in 2H.”Meanwhile, the target prices for Chile’s IPSA, Mexico’s Mexbol, Colombia’s ColCap and Peruvian stocks were cut by 9.8%, 7%, 5.6% and 3.7%, respectively.JPMorgan has an overweight rating for Colombian shares due to “good growth” and cheap valuation. The bank has a neutral stance for Chile and is underweight for Mexico and Peru. Argentine stocks were inaugurated at underweight after their recent outperformance and uncertainty around the upcoming presidential election.\--With assistance from Eduardo Thomson.To contact the reporter on this story: Vinícius Andrade in São Paulo at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Brazil’s equity benchmark Ibovespa index closed above the 100,000 mark for the first time on record as dovish signals from the Federal Reserve added support to global asset prices, and potentially signaling increased odds for rate cuts in Brazil.The index rose 0.9% to 100,303 on Wednesday, pushing gains this year to 14%.“I’m constructive on Brazil,” said AllianceBernstein’s portfolio manager for the Emerging Markets Multi-Asset portfolio Morgan Harting. “Within emerging markets, there’s a good combination of rapid earnings growth, reasonable valuations, room for interest rates to decline meaningfully and some scope for market-friendly reform,” said Harting.Investors have been seeing increased odds for the approval of President Jair Bolsonaro administration’s flagship social security overhaul as fewer lawmakers seem inclined to vote against it. The optimism regarding the bill -- which is seen as as a key issue in tackling the country’s budget deficit -- has been somewhat countering disappointment with the nation’s slower-than-expected economic recovery.According to the hedge fund firm Bahia Asset Management, Brazilian stocks are the most attractive asset in the local market and the Ibovespa may gain another 20% by year end to about 120,000. The fund expects growth to pick up from the second half of the year onward and the reform’s advance to unlock other microeconomic measures.“The most important driver is productivity,” said Will Pruett, a Boston-based money manager at Fidelity. “So I’m looking for micro reforms that address productivity, such as the tax reform and the privatization agenda,” Pruett said.The perspective of lower rates for a longer period has also been supportive. Economists expect Brazil’s central bank to cut its benchmark interest rate -- which is at a record low of 6.50% -- to 5.75% by the end of the year, according to BCB’s weekly survey.To contact the reporter on this story: Vinícius Andrade in São Paulo at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Catherine LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Updates prices) By Susan Mathew June 19 (Reuters) - Latin American currencies firmed on Wednesday, with Brazil's real and Mexico's peso reversing session losses to trade higher after the Federal Reserve signaled possible rate cuts of as much as half a percentage point in 2019. Brazil's real was up 0.2%, reversing losses of up to 0.6% logged earlier in the day, while Mexico's peso rose 0.1%, recovering from a decline of as much as 0.4%. Other regional currencies added to their gains. Most Latam stocks followed suit, with Sao Paulo-traded shares erasing losses to trade 0.8% higher, while gains in Mexican and Colombian stocks were bolstered.
The real rose about 0.4% while Sao Paulo-listed stocks also gained 0.4% to touch a near three-month high after Brazil's congressional pension reform bill coordinator Samuel Moreira said the proposed changes would generate savings of 913.4 billion reais ($237 billion) over the next decade. "All indications suggest that pension reform remains on track and may leave the committee with greater savings than the consensus expected," Dirk Willer, head of emerging market strategy at Citi Research, and Kenneth Lam, an emerging markets FX strategist, wrote in a note. The Argentine peso advanced for a third day in a sign of approval from markets after President Mauricio Macri picked a moderate running mate that could broaden his voter base in elections to be held later this year.
“The government will probably deliver something acceptable in terms of pension reform, but I’m a little worried on what you’re going to get afterward,” said Leonardo Linhares, a partner at SPX Capital, Brazil’s biggest independent hedge-fund firm with almost 40 billion reais ($9.9 billion) under management. Linhares, who runs the equities desk at SPX, says the government will likely burn through a lot of its political capital to push the unpopular reform through Congress.
While most Latin American stocks weakened on Monday, Brazil shares rose sharply after a pro-government march mounted pressure on Congress to pass reforms seen as crucial to the economy. Sao Paulo's Bovespa ...
It’s been more than a month since U.S. equities lagged behind their global peers on consecutive days. Perhaps it’s just a reflection of investors deciding it’s a good time to cull some gains with U.S. stocks among the best performers this year, especially on a currency-adjusted basis. The escalating trade war between the U.S. and China has taken a turn for the worse, and nobody is really sure how much damage it will do to profits.
Brazil's real weakened sharply on Thursday, falling below 4.04 per dollar for the first time in more than seven months as worries intensified over the slow progress of government reforms in Congress and ...
Brazilian retail sales in March posted their biggest annual decline in over two years, government statistics agency IBGE said on Thursday, adding to concerns the economy struggled badly, and possibly contracted, in the first quarter. Coming a day after the central bank kept its benchmark Selic rate on hold at 6.50 percent, the figures give further weight to the view that the economy will stagnate this year and add to calls for a cut sooner rather than later, economists say. Brazilian markets fell, with the real sliding more than 1 percent closer toward 4.00 per dollar and the Bovespa stock index falling 1.3 percent to 94,383 points.
An index of Latin American stocks rose on Wednesday, propped up by robust Brazilian shares gaining on optimism around a pension reform proposal, while most Latin American currencies firmed against a listless ...
Brazil's currency and stocks fell on Wednesday as potential hurdles for pension reforms weighed, while other Latin American stocks tracked world equities lower. Currencies succumbed to a stronger dollar. ...
Most Latin American stock markets rose on Thursday, as gains in index heavyweight Brazil boosted the regional benchmark even as global stocks edged lower after five days of gains, as investors sought signs ...
Brazil's benchmark stock index reached an all-time high earlier this month and is up 8.6 percent for the year. Investors in Brazil and across the world are betting that President Jair Bolsonaro will push through key changes to the social security system in Latin America's largest economy. The stakes are high for pension reform in Brazil because an improvement could boost the country's flagging economy and give it some stability.
Latin American shares rose on Friday, in line with other emerging market peers and world stocks, as encouraging signals from U.S.-China trade talks supported risk sentiment. MSCI's index of Latin American ...
Latin American markets rose on Thursday recovering from last session's steep falls as Brazil markets jumped with the country's political top brass trying to assuage investors after rising uncertainty around ...
Brazilian Economy Minister Paulo Guedes on Monday said the government's landmark pension reform may be diluted, but urged lawmakers not to water down targeted savings in the next decade to less than 1 trillion reais ($259 billion). Brazilian markets have slumped in recent days on growing concerns that political fragmentation in Brasilia will delay and dilute the reform that most economists see as critical to restoring public finances and kickstarting the economy. Guedes recognized that the negotiating process is having "natural" teething problems and that political arm-wrestling will likely result in a final bill that differs from the government's original draft.
A Brazilian appeals court judge on Monday ordered the release of former President Michel Temer from jail, following his arrest last week in connection with a corruption investigation. Federal prosecutors have accused Temer, who was president from 2016 to 2018, of leading a "criminal organization" that had received or arranged for 1.8 billion reais ($472 million) in bribes through various kickback schemes. Judge Ivan Athié of the TRF-2 federal appeals court said in his ruling that the evidence provided by investigators did not justify the "preventive" jailing of Temer and seven other defendants, including former minister Wellington Moreira Franco.
Brazilian financial markets fell in highly volatile trading on Thursday as investors feared former President Michel Temer's arrest on graft charges could slow proposed pension reform seen as critical to injecting life into a tepid economic recovery. Temer, who left office on Jan. 1, is accused of leading a "criminal organization" that took in 1.8 billion reais ($472 million) in a bribery and kickback scheme related to the construction of a nuclear power complex. Brazil's 10-year bond yield was up more than 20 basis points at 8.93 percent and the currency, the real, down over 1 percent at one point.