Brazilian stocks surprise with gains of up to 6%.
Brazilian stocks surprise with gains of up to 6%.
China’s recovery and Central Bank President Campos Neto’s statements bolster a sharp rise in the Bovespa index, Brazil’s main stock market indicator.
The rise of over 3.5% in China benefits all Latin American countries, and Brazil is no exception. Petrobras, VALE, Eletrobras, and Banco Bradesco lead the gains. However, it’s not only China’s effect that’s driving stock prices. Brazil is the Latin American country with the highest return today.
Brazil’s GDP may positively surprise in early 2024, as assessed by Roberto Campos Neto, president of the Central Bank, during a BTG Pactual event.
According to him, high-frequency data indicates that the service sector is “driving growth significantly.” The leader highlighted that the market “has been wrong [in projecting] growth consistently for three years,” and current prospects seem to remain in the more conservative territory.
Campos Neto also highlighted the strength of the labor market in Brazil, stating that it has been “quite surprising.” According to him, “we have finally seen the participation rate starting to rise again, which is something that hasn’t happened for quite some time.“
Among the most significant gains is Banco Bradesco, a key player in the Brazilian market. The 6% increase is also attributed to prospects regarding the public acquisition offer for one of its subsidiary companies, the payment processor Cielo.
Cielo announced that its main shareholders – Banco do Brasil and Bradesco – have decided to launch a public acquisition offer for the company to take it private again.
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