<Brazil> Cuts interest rates.
Top Financial News
Thu, 25 Mar 1999, 8:43am EST
Here is a bit of news which appears to be very market friendly,at least for the BOVESPA.
You heard about the SAP's warning about considerable shortfall for the upcoming quarter? I don't think it should affect ITWO but the other ERP software guys may take a hit today.
==========================
Brazilian Stocks, Bonds, Currency Rise on Central Bank Interest Rate Cut
(Rewrites headline.)
Sao Paulo, March 25 (Bloomberg) -- Brazilian stocks, bonds
and the currency rallied. The central bank's interest rate cut
late yesterday shored up confidence Latin America's biggest
economy may pull out of recession later this year.
The central bank cut the overnight interbank lending rate to
42 percent from 45 percent, a bet the currency has steadied
enough to enable the government to reduce borrowing costs. When
the currency was devalued in January, the rate was 29 percent.
''The 'patient' is giving clear signs that it is getting
better,'' said Peter West, chief economist at BBV Securities in
London.
The rate cut could help maintain a rally in Brazilian
stocks, with the benchmark index up 30 percent in dollar terms
over the last 30 days, the best performing market in the world.
Merrill Lynch & Co., the biggest U.S. brokerage, upgraded its
recommendation on Brazil stocks to overweight, anticipating
declining interest rates.
|
