Brazil markets gain ahead of US rate decision
Brazil’s stock market has gained in value ahead of the US Federal Reserve’s decision on interest rates this week, it has emerged.
The Bovespa index reached 59,5229.58 on Tuesday constituting a two-week high and a gain of 1.6 per cent in value at the close of trading.
This week’s meeting by the US Federal Reserve has fuelled the boost in Brazil’s market, analysts have noted.
After the Fed announced a surprise, 0.75 per cent emergency interest rate cut last week, a further reduction in the US base rate is anticipated in order to help guide the country’s economy away from recession.
Assets in Latin America could also increase if a widening yield gap between the region and US develops in interest rates, according to MarketWatch.
"Foreign investors sold a lot and tend to buy back on encouraging news like this," Brazil-based Solidus Brokerage co-manager Debora Morsch told Bloomberg.
For more information on Brazil property investment and to find out about uv10’s latest projects, contact uv10 on 0845 643 1036 or email info@uv10.com or visit our website: http://www.uv10.com
