Stock markets investors around the world were singing a happy tune today
when only 16 out of 92 (17%) of benchmark equity indexes closed in negative territory. 27 of the indexes finished with gains of 1% or more and the best performer of them all, the Brazilian BOVESPA index, surged 2.9%. Here's the top 10:
This article from Reuters cites two primary reasons for the strong performance in global equity markets:
1) A better than expected Italian bond auction and 2) rumors of a beat in the upcoming Chinese first quarter GDP release. Even though neither of these events had anything to do with Brazil directly, Brazilian stocks most likely received a second boost as a result of a snap-back rally since the BOVESPA had decline 9 out of the previous 11 days. Even with today's 2.9% gain, the past 30 days have not been kind.
Update:
Oops, the Chinese GDP number ended up missing (8.1% vs 8.4% expected vs 9.0% rumored). Funny thing about those rumors, they can't always be trusted. There's not much of a reaction in the markets; S&P 500 futures dropped about 6 points on the news and at the time of this post (22:37 -7:00) the Shanghai SE Composite is flat.
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