Chinese growth gives Brazil a boost
China’s economic expansion has given the Brazilian economy a significant boost this week.
As a result of this, coupled with "better-than-expected-earnings" at US firms, the Brazilian stock index rose more than it has in five years.
Manager of $280 million (£140 million) of Brazilian stocks at a Sao Paulo-based firm, Alexandre Vianna, explained why the Brazilian stock market had experienced this boost.
He said: "Investors are taking advantage of the positive news from the US and China to buy stocks that are now cheap because of the recent decline.
"[However] there’s still no clear direction, as the market is vulnerable to big swings driven by news."
Brazil’s Bovespa stock exchange’s good performance is in contrast to other global markets, which are currently feeling the effects of the credit crunch started by the sub-prime lending crisis that began in the US at the end of last year.
Fellow developing nation China has also weathered the global credit crunch well, as it announced this month that its gross domestic product expanded by 11.2 per cent in the three months ending in December 2007.
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