By Gerald Jeffris
BRASILIA--Brazil's Bovespa stock index broke a three-session
losing streak to end slightly higher Tuesday, with local blue chips
Vale and Embraer among stronger advancers.
The main Sao Paulo index ended 0.3% higher at 47,840 points.
Volume was moderate, with 5.3 billion Brazilian reais ($2.2
billion) in shares changing hands.
Traders noted the index began the session moving higher amid
optimism brought by efforts from authorities in some key emerging
markets to shore up confidence in their currencies.
Among those, India's central bank unexpectedly raised its
interest rate 0.25-percentage-point to 8% as part of an effort to
rein in rising prices.
The governor of the central bank of Turkey, Erdem Basci, also
gave hints that his country could soon raise interest rates to curb
accelerated inflation.
Locally, meanwhile, investors were encouraged by comments from
Brazilian Finance Minister Guido Mantega that Brazil's government
would freeze enough spending this year to help stabilize the
country's debt-to-GDP ratio. Analysts note a tighter fiscal stance
from the government could aid Brazil's central bank in bringing its
own recent monetary tightening cycle to an end in coming months.
Brazil's central bank has raised the country's benchmark Selic
interest rate by 3.25 percentage points since April to 10.50%.
At the end of trading Tuesday, mining giant Vale was among
leaders, advancing 1.2% to BRL28.88.
Aircraft manufacturer Embraer (EMBR3.BR) also led gainers,
rising 2.0% to BRL19.28.
In the banking sector, leading retail bank Itau (ITUB4.BR) rose
0.7% to BRL30.06 and rival Bradesco (BBDC4.BR) was up 0.1% to
BRL26.49.
Elsewhere, fixed-line telecom Oi (OIBR4.BR) fell 1.0% to
BRL4.00, steel company Gerdau (GGB, GGBR4.BR) dropped 0.1% to
BRL16.69, airline Gol (GOLL4.BR) rose 0.6% to BRL10.16, and
state-run oil company Petrobras (PETR4.BR) fell 0.4% to
BRL15.05.
Write to Gerald Jeffris at gerald.jeffris@wsj.com
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