Post by Moses on Mar 22, 2004 17:08:12 GMT -5
Brazil's Currency, Bonds Snap Rallies on Rising Terror Concerns
quote.bloomberg.com/apps/news?pid=10000086&sid=aBwjxZXbYqNY&refer=latin_america
March 22 (Bloomberg) -- Brazil's currency and bonds fell after Sheikh Ahmed Yassin, spiritual leader of the Palestinian Islamic group Hamas, was killed by Israeli forces, boosting investor concern that terror attacks may increase, slowing investment flows to emerging markets, including Brazil.
Concern about terrorist attacks may prompt foreign investors to reduce holdings in higher-risk markets, such as Brazil, and increase investment in lower risk markets such as the U.S. and Europe, said Gerson Nobrega, a trader at Banco Alfa de Investimento SA in Sao Paulo. Terror attacks in the U.S. in 2001 and Madrid this month sent markets tumbling worldwide.
``Things had been looking a bit better here at home, but the terror concerns remain alive after the events in the Middle East,'' he said. ``Concern about terror remains and may be leading some to reduce their bets a bit on Brazil.''
Brazil's real fell 0.3 percent to 2.9092 per dollar at 9:34 a.m. New York time from 2.9015 late Friday, boosting its decline in 2004 to 0.6 percent, the seventh-worst performance against the dollar among the 16 most-traded currencies.
Brazil's benchmark 11 percent bond maturing in 2040 fell 0.65 cent 108.15 cents to the dollar, its first decline in five days, causing the yield to rise to 9.79 percent, according to J.P. Morgan Chase & Co.
Nobrega expects the real to trade close to 2.90 to the dollar in coming weeks as inflows from exports limit the impact of illegal campaign finance allegations and disputes over economic policy within the Workers' Party government of President Luiz Inacio Lula da Silva.
``The outlook of those both long and short the dollar is for it to remain right where it is for a bit,'' he added.
The real is likely to slide to about 3 per dollar by year- end, he said.
Brazil's government today said its trade surplus, or excess of exports over imports, rose by more than a fifth to $629 million in the week ending March 21, the second highest weekly figure this year, from $511 million a week earlier
To contact the reporter on this story:
Jeb Blount in Rio de Janeiro, or jblount@bloomberg.net,
To contact the editor of this story:
Laura Zelenko in New York at lzelenko@bloomberg.net
quote.bloomberg.com/apps/news?pid=10000086&sid=aBwjxZXbYqNY&refer=latin_america
March 22 (Bloomberg) -- Brazil's currency and bonds fell after Sheikh Ahmed Yassin, spiritual leader of the Palestinian Islamic group Hamas, was killed by Israeli forces, boosting investor concern that terror attacks may increase, slowing investment flows to emerging markets, including Brazil.
Concern about terrorist attacks may prompt foreign investors to reduce holdings in higher-risk markets, such as Brazil, and increase investment in lower risk markets such as the U.S. and Europe, said Gerson Nobrega, a trader at Banco Alfa de Investimento SA in Sao Paulo. Terror attacks in the U.S. in 2001 and Madrid this month sent markets tumbling worldwide.
``Things had been looking a bit better here at home, but the terror concerns remain alive after the events in the Middle East,'' he said. ``Concern about terror remains and may be leading some to reduce their bets a bit on Brazil.''
Brazil's real fell 0.3 percent to 2.9092 per dollar at 9:34 a.m. New York time from 2.9015 late Friday, boosting its decline in 2004 to 0.6 percent, the seventh-worst performance against the dollar among the 16 most-traded currencies.
Brazil's benchmark 11 percent bond maturing in 2040 fell 0.65 cent 108.15 cents to the dollar, its first decline in five days, causing the yield to rise to 9.79 percent, according to J.P. Morgan Chase & Co.
Nobrega expects the real to trade close to 2.90 to the dollar in coming weeks as inflows from exports limit the impact of illegal campaign finance allegations and disputes over economic policy within the Workers' Party government of President Luiz Inacio Lula da Silva.
``The outlook of those both long and short the dollar is for it to remain right where it is for a bit,'' he added.
The real is likely to slide to about 3 per dollar by year- end, he said.
Brazil's government today said its trade surplus, or excess of exports over imports, rose by more than a fifth to $629 million in the week ending March 21, the second highest weekly figure this year, from $511 million a week earlier
To contact the reporter on this story:
Jeb Blount in Rio de Janeiro, or jblount@bloomberg.net,
To contact the editor of this story:
Laura Zelenko in New York at lzelenko@bloomberg.net
