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Montevideo, May 19th 2019 - 12:48 UTC

Brazilian markets react positively on hopes of progress on pension reform

Friday, April 5th 2019 - 09:37 UTC
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Brazilian President Jair Bolsonaro met fellow politicians in a bid to build support to pass his government's proposal to reform the country's bloated pension system Brazilian President Jair Bolsonaro met fellow politicians in a bid to build support to pass his government's proposal to reform the country's bloated pension system

Most Latin American stock markets and currencies rose on Thursday, with assets in Brazil gaining on hopes of smooth progress on pension reform. Brazilian President Jair Bolsonaro met fellow politicians in a bid to build support to pass his government's proposal to reform the country's bloated pension system, seen by investors as crucial to trim Brazil's wide fiscal deficit.

MSCI's index of Latin American stocks rose 1.2 percent. Each country's bourse gained at least as much as the regional benchmark.

Sao Paulo-traded stocks tacked on 1.9 percent, clocking broad-based gains in their best one-day performance in two weeks. The index more than made up ground lost in Wednesday's 0.9 percent slide.

Rafael Bevilacqua, chief strategist at investment consultancy Levante, said the performance was a combination of a recovery from the previous session's losses and optimism around the government's attempt to articulate its reform proposal.

Common shares and preferred shares of state-run oil giant Petrobras jumped 3.3 percent and 3.4 percent, respectively.

Brazil's mines and energy minister said he is optimistic there will be a deal by next week resolving the government's dispute with Petrobras over the offshore oil-producing zone
known as the transfer of rights area.

Petrobras is expected to receive a multibillion-dollar payment from the government to resolve a dispute over a 2010 deal granting the firm rights to extract oil in the area.

Shares of miner Vale SA rose 0.7 percent, following part of a rise seen in Dalian-traded iron ore futures earlier in the global day.

Brazil's real strengthened 0.4 percent, while yields on its local, 10-year bonds dipped to 8.93 percent.

Categories: Economy, Politics, Brazil.

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