Bright Outlook in Brazil’s Stock Markets
Today, a far brighter outlook helped lift the dismal gray fog surrounding global financial markets, which were pummeled by a global sell-off last week due to surging fears that Greece was looking as it it would become the European Union’s premiere sovereign debt default. Investors were sent scrambling wildly into the U.S. dollar looking for safety as they recalled the dark days of the 2008 global financial crisis, which may still be lingering around the world. As parts of Europe teeter on the edge of financial collapse, things are heating up in Brazil.
The brightened sentiment stimulated global commodity prices, which are the foundation of Brazil’s benchmark Ibovespa stock index. Much of the growth was attributed to the enthusiasm of investors and forex trading. The Ibovespa today opened at 53675 points, up from Friday’s close at 53230 points, approximately 8%. This is today’s good news, but some sources predict this is no “one week wonder.” Brazil seems poised to set a stunning example of how to recover from a worldwide recession. Brazil’s economy is growing at three times the rate of that of the United States, and leads the way in world bio fuels. Recently, China replaced the US as Brazil’s biggest business partner.
Enjoy this video from 60 Minutes, highlighting the factors that have helped bolster the Brazilian financial boom: