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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (28170)	1/22/2008 9:32:17 PM
From: elmatador	Read Replies (2) \| Respond to of 217657

We used the holiday to scare the US into cut. It did. See the result. Bullfighter uses red piece of cloth and the US toro rushes in, then we just move away and the 700Kg of muscle pass through. Then he turns around and come in for the kill and we repeat. Ole! Ole! see the result: Brazil's stocks jump, real rallies on Fed rate cut SAO PAULO, Jan 22 (Reuters) - Brazil's main stock index had its biggest one-day jump in 10 months and the currency rallied nearly 2 percent on Tuesday after a surprise U.S. rate cut boosted the appeal of high-yield emerging market securities. The Bovespa index .BVSP of the Sao Paulo Stock Exchange rose 4.45 percent to 56,097.18 points, the biggest rise since a 4.95 percent gain on March 6, 2007. The index tumbled 6.6 percent on Monday. Trading volume on Tuesday reached 8.1 billion reais, the highest this year. The U.S. Federal Reserve slashed benchmark interest rates by a hefty three-quarters of a percentage point in a surprise move to try to avert a recession. The cut took the key federal funds rate, which governs overnight lending between banks, down to 3.5 percent, the lowest level since September 2005. Brazil's currency, the real <BRL=>BRBY, gained to 1.793 per U.S. dollar after a 2.5 percent tumble on Monday. The lower U.S. benchmark rate boosted the appeal of fixed-income securities in Brazil, where lending rates are at 11.25 percent. The country may see some dollar inflow from carry-trade investors, who borrow in currencies with low funding costs such as the Japanese yen to buy high-yield assets denominated in currencies such as the real. "There will be some room (for arbitrage investments), but there won't be that flood of dollars that we had in the past," said Marcelo Voss, chief economist at the Liquidez brokerage. Interest-rate futures <0#DIJ:> were mostly lower on the BM&F commodities and futures exchange in Sao Paulo, reflecting improved investor sentiment after the Fed cut. Continued... reuters.com