LOS ANGELES (MarketWatch) — Brazilian stocks rose Wednesday as steel producer Usiminas gained on a ratings upgrade and after the U.S. central bank chief said the world’s largest economy is still seeing some growth.
Brazil’s Ibovespa (BR:BVSP) ended higher by 1.3% at 54,583.13, paced by home builders, including a 4.7% climb in shares of Gafisa (US:GFA) , steel and retail stocks.
Brazilian stocks rose for a second consecutive session, with equities finding support after U.S. Federal Reserve Chairman Ben Bernanke told U.S. lawmakers in a second day of testimony that he doesn’t foresee the U.S. economy contracting.
“At this point we don’t see a double-dip recession — we see continued moderate growth,” Bernanke said in testimony to the House Financial Services panel.
Brazilian and U.S. stocks on Tuesday rose after Bernanke said the Fed was prepared to launch efforts to aid the sluggish economy, though he didn’t outline any near-term plans.
Slowing conditions in more districts were reported by the Federal Reserve in its so-called Beige Book survey on the economy.
On Wall Street Wednesday, the S&P 500 Index (US:SPX) rose 0.7% to 1,372.78 and the Dow Jones Industrial Average (US:DJIA) jumped 103 points.In Sao Paulo trading, shares of steel producer Usiminas (BR:USIM5) closed up 3.7% at 6.17 reals ($3.05).
Deutsche Bank upgraded the shares to hold from sell following their underperformance in recent weeks compared with their peers.The shares through Tuesday had lost 20% over the last 30 days.
“Although we believe that Usiminas will report a weak [second quarter] and that results should improve slowly in the quarters ahead, we also think that the current stock price already reflects this challenging outlook,” Deutsche Bank analyst Rodrigo Barros told clients, adding its target price on Usiminas is 7 reals each and that its financial forecasts are unchanged.
Usiminas’s quarterly results are due for release on July 30. At HSBC, Vale (BR:VALE5) was upgraded to overweight from neutral and the price target on the U.S.-listed shares (US:VALE) was bumped up to $24.50 from $22.
After a 17% drop in the iron ore miner’s share price, HSBC metals and mining analyst Jonathan Brandt said optimism stems from the likelihood that Chinese macroeconomic data will improve in the second half of 2012 “while iron ore prices have well- documented cost support at current spot levels.”
China is a key market for Vale, and is Brazil’s largest trading partner.
marketwatch.com
Brazil’s Ibovespa (BR:BVSP) ended higher by 1.3% at 54,583.13, paced by home builders, including a 4.7% climb in shares of Gafisa (US:GFA) , steel and retail stocks.
Brazilian stocks rose for a second consecutive session, with equities finding support after U.S. Federal Reserve Chairman Ben Bernanke told U.S. lawmakers in a second day of testimony that he doesn’t foresee the U.S. economy contracting.
“At this point we don’t see a double-dip recession — we see continued moderate growth,” Bernanke said in testimony to the House Financial Services panel.
Brazilian and U.S. stocks on Tuesday rose after Bernanke said the Fed was prepared to launch efforts to aid the sluggish economy, though he didn’t outline any near-term plans.
Slowing conditions in more districts were reported by the Federal Reserve in its so-called Beige Book survey on the economy.
On Wall Street Wednesday, the S&P 500 Index (US:SPX) rose 0.7% to 1,372.78 and the Dow Jones Industrial Average (US:DJIA) jumped 103 points.In Sao Paulo trading, shares of steel producer Usiminas (BR:USIM5) closed up 3.7% at 6.17 reals ($3.05).
Deutsche Bank upgraded the shares to hold from sell following their underperformance in recent weeks compared with their peers.The shares through Tuesday had lost 20% over the last 30 days.
“Although we believe that Usiminas will report a weak [second quarter] and that results should improve slowly in the quarters ahead, we also think that the current stock price already reflects this challenging outlook,” Deutsche Bank analyst Rodrigo Barros told clients, adding its target price on Usiminas is 7 reals each and that its financial forecasts are unchanged.
Usiminas’s quarterly results are due for release on July 30. At HSBC, Vale (BR:VALE5) was upgraded to overweight from neutral and the price target on the U.S.-listed shares (US:VALE) was bumped up to $24.50 from $22.
After a 17% drop in the iron ore miner’s share price, HSBC metals and mining analyst Jonathan Brandt said optimism stems from the likelihood that Chinese macroeconomic data will improve in the second half of 2012 “while iron ore prices have well- documented cost support at current spot levels.”
China is a key market for Vale, and is Brazil’s largest trading partner.
marketwatch.com
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