Oil Companies And Mining Companies Led The Stock Price Increases In Brazil
October 13th, 2009 | File Under : Companies - Mining Stock - Trade & Market
Brazilian stock futures gained as the U.S. dollar’s decline spurred demand for commodities, sending Vale SA and Petroleo Brasileiro SA higher.
Petrobras, as Brazil’s state-controlled oil company is known, added 0.4 percent in U.S.-trading as crude advanced above $74 a barrel. Vale SA, the world’s biggest iron ore miner, gained as metal prices rose.
Bovespa index futures added 0.6 percent to 64,550 at 8:09 a.m. New York time. Brazilian stocks had their biggest weekly gain since July last week after analysts said earnings growth will accelerate as the economy rebounds from its first recession since 2003. The markets were closed yesterday for a holiday.
Oil rose above $74 a barrel in New York for the first time since August as the slumping dollar heightened crude’s appeal as an inflation hedge. The Bloomberg Base Metals 3-Month Price Commodity Index gained 0.2 percent.
The dollar declined to the weakest level against the euro since before the bankruptcy of Lehman Brothers Holdings Inc., reflecting an unwinding of demand for the greenback as a refuge.
Petrobras American depositary receipts rose 17 cents to $48.45 in trading before markets opened in New York. Vale’s ADRs added 2 cents to $25.30.
Emerging-market stocks have room for further gains in the next one to two years because of earnings and economic growth prospects, said Allan Conway, head of emerging-market equities at Schroder Investment Management.
“There’s significant return for emerging markets” after driving world growth and with corporate earnings set to strengthen, Conway told reporters in Seoul today. Emerging nations will represent 70 percent to 75 percent of global growth for the “foreseeable future,” he said.
Find More Other News : Brazil Stocks - Iron Ore Prices - metal prices - Mining Investment - mining stock report