Brazil Stocks Higher On Rising Global Commodities Prices

Brazilian share prices were higher in early trading Monday on rising commodities prices in international markets.

Brazil’s benchmark Ibovespa stocks index was up 0.20% at 64,545 points
in early trading, according to Tullet Prebon via Factset.

Prices of oil, metals and farm commodities were broadly higher in
international markets Monday, rebounding from steep losses last week.

A number of Brazilian blue chip companies are major commodities exporters.

On the domestic front, investors were cheered by release of this
week’s central bank survey of economists. The economists pulled down
their forecast for 2011 inflation to 6.33% from 6.37% last week.

Lower inflation expectations may help promote sustainable economic
growth while making a fresh round of interest rate increases less
likely.

But Europe could bring a more bearish tone to the market later in the session, according to some traders.

Earlier Monday, Standard and Poor’s cut its sovereign rating for Greece to “B,” with a negative outlook.

The ratings downgrade comes at a time of skepticism about Greece’s
ability to meet stern fiscal austerity goals. Greece may have to
renegotiate debt, according to some analysts.

The Greek worries contributed to falling stock prices in Europe Monday.

Brazilian blue chips were mixed in early trading.

State-controlled energy giant Petrobras (PBR, PETR4.BR) was up 0.37% at 24.30 Brazilian reais ($15.09) in early trading.

But mining major Vale (VALE, VALE5.BR) fell 0.29% to BRL44.22.

Aircraft manufacturer Empresa Brasileira de Aeronautica (ERJ, EMBR3.BR), or Embraer, was unchanged at BRL13.29.

Minas Gerais utility Cemig (CIG, CMIG4.BR) was also unchanged, trading at BRL31.10.

Steel maker Cia. Siderurgica Nacional (SID, CSNA3.BR) rose 1.01% to BRL23.05.

Telecom leader Tele Norte Leste SA (TNE, TNLP4.BR), or Oi, declined 0.87% to BRL26.62.