Increase in Wood Pulp Prices Helping Boost Brazil's Ibovepsa Index, Snapping 7-Day Slump


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Latin American markets are mixed today, with the Ibovepsa index snapping a seven-day slump, albeit losing gains over the home stretch. In the meantime, the primary indices for shares of Mexican and Argentina are moderately lower.

Here's where the regional markets stand today:

- Ibovespa was up 424.53. Now up 353.5 (+0.6%) to 56,508.

- IPC (Mexico City) was down 180.02. Now down 195.7 (-0.4%) to 43,940.

- Santiago Index IPSA up 17.68 (+0.45%) to 3,914.93.

- Merval Buenos Aires down 5.89 (-0.2%) to 3,118.5

An upbeat assessment of German business attitudes is helping lift many stocks today. The German Ifo business climate indicator rose to 107.4 for February, its best one-month rise in more than two years and boosting optimism after disappointing PMI data earlier this week rekindled concerns over the euro zone economy.

But the advance was limited by new government data today showing inflation in Brazil slowed less than expected through mid-month despite a government-sponsored cut in electricity rates, fueling worries the central bank could raise interest rates later this year.

The IPCA-15 consumer price index rose 0.68%, above the median analyst forecast for a 0.61% rise, the government statistics agency IBGE said. The index rose 0.88% in the prior month.

Gains on the Ibovespa index and for the IPSA index in Chile were carried by wood pulp exporters after Suzano Papel e Celulose SA said it would raise wood pulp prices by $20 per ton beginning next month. Suzano (SUZB5.SA) shares are up nearly 6% today.

U.S.-listed shares of BRF Brasil Foods ( BRFS ) are up about 4.5% after the food wholesaler late yesterday said retail tycoon Abilio Diniz was nominated to be board chairman.

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

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

This article appears in: Investing , Commodities

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