More good news for Brazilian economy
There was more good news for the Brazilian economy yesterday as the Sao Paulo stock exchange achieved its highest close since June.
Following cuts on the benchmark US lending-rate by the Federal Reserve, the Bosvespa index rose by 4.28 per cent and the Brazilian real experienced its strongest level in more than seven weeks as it gained over two per cent to close at 1.877 per US dollar.
Experts have predicted that rather than harm the Brazilian economy, the current crisis in the US lending market could benefit emerging market assets.
Alvaro Bandeia, director at brokerage Agora Senior CTVM, told Reuters: "Brazil has come out of this crisis reasonable unharmed. [Actually] we come out as a very attractive investment."
In the same week as this, Goldman Sachs has announced that it will increase its level of Brazilian strategic investment, which it is already employing local teams to investigate.
Key areas of investment for the company will be infrastructure and the mortgage market, where it will work with retail banks and investors packaging debt.
