Brazilian stocks slide with Wall St eyeing FOMC
Reuters, Monday, May 17, 1999 at 12:07
SAO PAULO, May 17 (Reuters) - Brazilian stocks slumped
nearly 3 percent at midday Monday, with investors concerned
about declines in U.S. equity prices triggered by worries the
Federal Reserve may move to a tighter policy stance, traders
said.
Sao Paulo's blue-chip stock index Bovespa (INDEX:$BVSP.X) fell 2.9
percent to 11,973 points in thin trade as investors waited for
the outcome of Tuesday's U.S. Federal Reserve's Federal Open
Market Committee (FOMC) meeting.
"Investors see this a good opportunity to reap profits
because they see a price adjustment from here on," said one
local trader. "Depending on the FOMC results, we could see a
little break in foreign investment flows, especially in the
local stock market."
If the FOMC adopts a tighter credit policy due to an
unexpected jump in U.S. consumer inflation data reported last
Friday, market watchers predict slower foreign investment in
higher yielding emerging market instruments.
The market's bellwether share Telebras preferred receipt
(SAO:RCTB41) was down 1.67 percent to 165.20 reais, while
Petrobras preferred (SAO:PETR4) was down 3.64 percent to 265
reais.
saopaulo.newsroom@reuters.com))
Copyright 1999, Reuters News Service
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