CORRECTION: Brazil Markets Build On Monday's Gains, But Bouts of Selling Pressure As Investors Weigh Coming Presidential Election and Continuing Economic Concerns


(In an earlier story we stated that Brazil stocks are building on Monday's gains, but on this Tuesday trading session are off day highs above 16,000. The day highs for the index were above 60,000, not 16,000 as previous stated. A corrected version follows).

Brazil stocks are building on Monday's gains, but on this Tuesday trading session are off day highs above 60,000 and have twice had to recover from bouts of selling pressure that have taken the overall index to slightly negative territory.

At last look 43 of 70 member stocks were rising - more than 50 of them had been up inside the last hour - as investors weighed reports of rising support for opposition party leader Marina Silva for president, dimming prospects for the re-election of Dilma Rousseff, against continued economic concerns.

Bloomberg reported that Ibovespa futures fell as a rally that pushed Brazil's benchmark index to the highest level since February 2013 was deemed excessive considering the prospects for the Brazilian economy.

The benchmark Ibovespa index was up 0.4% at around 59,980 at last look, below a day high 60,020.48. It rose 2.3% Monday, and has climbed 33% from this year's low on March 14, the biggest increase during that span among major stock markets.

Observers believe Silva, who is expected to be appointed by her party PSB to run after an Aug. 13 plane crash claimed the life of Eduardo Campos, will be less likely to intervene in state-owned companies. Silva was Campo's running mate.

State-owned oil giant Petroleo Brasiliero, known as Petrobras, was one of the biggest gainers Monday, with U.S.-traded ADRs rising 4.8% to close at $18.02.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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