Brazilian property investor confidence leads to stock gains
The benchmark Bovespa index of the Sao Paolo exchange showed its third day of gains on Thursday (November 5th) as investor confidence grows.
Brazil’s currency, the real, also strengthened 0.63 per cent to 1.722 per dollar, which was also its third day of gains in a row.
The gains were fuelled by advances in US equities and a drop in jobless claims which drove up the Dow Jones.
"Before we were seeing production increases and unemployment claim increases, which did not bode well for the future," said Sergio Machado, portfolio manager at boutique investment firm Vetorial Asset Management.
Investor confidence in the South American country was also boosted by third-quarter earnings data from mobile phone company Vivo and steelmaker Gerdau.
The steelmaker showed an improvement in sales and production while Vivo said that its quarterly net income more than doubled from a year earlier as it signed up more Brazilian property owners to contracts.
Finance minister Guido Mantega also told Brazil real estate owners that no new capital control measures would be introduced to the country in the near future.
