The S&P500 is basically UNCH as goes 2011 so far. The Bovespa is down about 2.5%, Chile's IPSA is down about 3%, Peru's IGBVL is not having a good start to the year.
Showing posts with label bovespa. Show all posts
Showing posts with label bovespa. Show all posts
Friday, January 21, 2011
South America vs S&P500, 2011
This could turn into a weekly obsessive chart at IKN during 2011 (that's fair warning):
Tuesday, November 4, 2008
The Aracruz news today is an example of the Fed plan working nicely
Come to think of it, he looked kinda Brazilian once............1) Bennyboy&Co. offer U$30Bn in facilities to Brazil (along with S.Korea, Singapore and Mexico, of course).
2) Banks rebound.
3) Today's news is that Aracruz Celulosa, world-class heavyweight in the paper/pulp business, has reached agreement to unwind 97% of its derivatives losses with local banks (undisclosed names). The amount in play is a very hefty U$2.13Bn.
4) Aracuz stock is up 9% in early Brazil trading on this news and leads the Bovespa right now.
2) Banks rebound.
3) Today's news is that Aracruz Celulosa, world-class heavyweight in the paper/pulp business, has reached agreement to unwind 97% of its derivatives losses with local banks (undisclosed names). The amount in play is a very hefty U$2.13Bn.
4) Aracuz stock is up 9% in early Brazil trading on this news and leads the Bovespa right now.
The moral of the story is; offer free money to Brazilians and they know what to do with it. This is how it's supposed to work everywhere, I think. The hoarding techniques used up North so far have meant this kind of freeing-up deal hasn't happened so far in the US markets.
Wednesday, October 15, 2008
Brazil decides to lapse into hysteria
Worker bee explains to the drones where to locate the cool flowers he found Is it possible that the Bovespa dragged down the Dow? When news of the Bovespa being halted filtered through the Dow clearly legged down again, so there's at least some evidence to suggest that, at least in the final stretch, BVSP was the cause and SPX the effect.
The reason behind the Brazilian panic today is summed up in this Bloomie report that tells how analysts suddenly decided Brazil and its companies were facing U$27n in currency losses. Add to the mix the US retail sales, Brazil retail sales that were down a touch (though still quite strong, it has to be said), pour into a greased tin and bake in a medium oven for 35 minutes and the result was a lot...a LOT...of screaming traders on the Sao Paolo trading floor today (and a certain President Lula who must be regretting turning his back on socialist roots right now).
The selling was clearly overdone today and offers the bargain hunter a good window tomorrow. A lot of the issue is pure psychology that isn't helped by regulations that are supposed to calm nerves but do the exact opposite to the Latino mindset. If a trading halt due to a 10% index loss in enforced up there in the North, traders wuite rightly step back, have a look around, have time to think a bit, phone the big hitting clients, be rational etc etc. Then when trading re-starts the deired effect of a rebound happens more often than not.
Not true down here, as that's the right rule for the wrong continent. The 35 minute trading halt on the Bovespa today was just enough time to stew already frayed latino nerves to a state of hysteria; when trading re-started the immediate move was an immediate 600 point drop that finished another 2,000 points down once all was done and dusted. So that 14% gain I pointed out just two days ago has been all but totally wiped out in a single session (check out PBR at $25 once again), and it goes without saying that the story has been repeated at all the other main exchanges, too.
The reason behind the Brazilian panic today is summed up in this Bloomie report that tells how analysts suddenly decided Brazil and its companies were facing U$27n in currency losses. Add to the mix the US retail sales, Brazil retail sales that were down a touch (though still quite strong, it has to be said), pour into a greased tin and bake in a medium oven for 35 minutes and the result was a lot...a LOT...of screaming traders on the Sao Paolo trading floor today (and a certain President Lula who must be regretting turning his back on socialist roots right now).
The selling was clearly overdone today and offers the bargain hunter a good window tomorrow. A lot of the issue is pure psychology that isn't helped by regulations that are supposed to calm nerves but do the exact opposite to the Latino mindset. If a trading halt due to a 10% index loss in enforced up there in the North, traders wuite rightly step back, have a look around, have time to think a bit, phone the big hitting clients, be rational etc etc. Then when trading re-starts the deired effect of a rebound happens more often than not.
Not true down here, as that's the right rule for the wrong continent. The 35 minute trading halt on the Bovespa today was just enough time to stew already frayed latino nerves to a state of hysteria; when trading re-started the immediate move was an immediate 600 point drop that finished another 2,000 points down once all was done and dusted. So that 14% gain I pointed out just two days ago has been all but totally wiped out in a single session (check out PBR at $25 once again), and it goes without saying that the story has been repeated at all the other main exchanges, too.
Subscribe to:
Posts (Atom)