Petrobras, Vale
Many of the Brazil stocks, including Petrobras (NYSE: PBR), Vale (NYSE: VALE) ended higher as commodity prices rebounded
The major stock index in Brazil, Ibovespa, was up by 0.62 percent on the day.
Giant miner Vale S.A. rose 1.10 percent to BRL41.25, while the state-owned oil company Petrobras gained 0.70 percent for the day.
Petrobras, Vale
Showing posts with label Bovespa. Show all posts
Showing posts with label Bovespa. Show all posts
Tuesday, February 9, 2010
Monday, February 1, 2010
Mark Mobius: Brazil Versus China
Mark Mobius talks Brazil versus China
While Mark Mobius, like many others, continues to be bullish on China, he considers the economy of Brazil "more sustainable," as it has no need to depend on imports, in contrast to China, which must import large number of crops and metals in order to grow.
“Brazil’s economy is more sustainable because they don’t have to import anything. China has to import oil, iron ore and foods,” said Mobius. “Brazil is in a situation where it has tremendous resources. Not only mineral resources, but agricultural resources.”
Of course the difference is China has about a billion more people, which makes long-term demand for products and services a key element of its economic policies, which grant it leverage when dealing with foreign companies and governments.
Either country is to be considered a bull, and even with its better position of sustainability, China is still the country to look for over the next decade or two for major growth.
Of course Brazil will participate in that growth by providing a number of crops, metals and other raw materials needed to supply the growing Chinese needs.
Mark Mobius talks Brazil versus China
While Mark Mobius, like many others, continues to be bullish on China, he considers the economy of Brazil "more sustainable," as it has no need to depend on imports, in contrast to China, which must import large number of crops and metals in order to grow.
“Brazil’s economy is more sustainable because they don’t have to import anything. China has to import oil, iron ore and foods,” said Mobius. “Brazil is in a situation where it has tremendous resources. Not only mineral resources, but agricultural resources.”
Of course the difference is China has about a billion more people, which makes long-term demand for products and services a key element of its economic policies, which grant it leverage when dealing with foreign companies and governments.
Either country is to be considered a bull, and even with its better position of sustainability, China is still the country to look for over the next decade or two for major growth.
Of course Brazil will participate in that growth by providing a number of crops, metals and other raw materials needed to supply the growing Chinese needs.
Mark Mobius talks Brazil versus China
Monday, January 12, 2009
Falling Commodity Prices Push Brazilian Stocks Down
Bovespa plunges as falling commodity prices put pressure on the Brazilian stock market.
As commodities go, so goes Brazil, and that has been shown again to be true as falling commodity prices pushed the Bovespa to its lowest levels since November 21, 2008, dropping 2,179.47 to 39,403.47, a 5.2 percent loss.
That effectively wiped out half of the gain since the beginning of the year. Much of the rise in the first part of the year was from the illusion the stimulus plans implemented around the world would push up the demand for commodities, which Brazil relies so strongly on.
Even so, long term Brazil will do well, as sooner or later the need for commodities will kick in and override the fears permeating the global markets at this time. As far as the near term, many are starting to believe the optimism was highly exaggerated, and things will take longer to recover than thought.
In 2008 the Bovespa went off the cliff by 41 percent, but had a brief surge since the beginning of 2009.
Vale, Rio Tinto Group, Gerdau and Petrobras, among many others, all participated in the big decline today.
Raw materials and oil make up 54 percent of the MSCI Brazil Index.
When it comes down to it, investors don't believe countries are anywhere near ready to invest heavily in commodities, so they're pulling back until they are convinced to the contrary. That'll take some time.
As commodities go, so goes Brazil, and that has been shown again to be true as falling commodity prices pushed the Bovespa to its lowest levels since November 21, 2008, dropping 2,179.47 to 39,403.47, a 5.2 percent loss.
That effectively wiped out half of the gain since the beginning of the year. Much of the rise in the first part of the year was from the illusion the stimulus plans implemented around the world would push up the demand for commodities, which Brazil relies so strongly on.
Even so, long term Brazil will do well, as sooner or later the need for commodities will kick in and override the fears permeating the global markets at this time. As far as the near term, many are starting to believe the optimism was highly exaggerated, and things will take longer to recover than thought.
In 2008 the Bovespa went off the cliff by 41 percent, but had a brief surge since the beginning of 2009.
Vale, Rio Tinto Group, Gerdau and Petrobras, among many others, all participated in the big decline today.
Raw materials and oil make up 54 percent of the MSCI Brazil Index.
When it comes down to it, investors don't believe countries are anywhere near ready to invest heavily in commodities, so they're pulling back until they are convinced to the contrary. That'll take some time.
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