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Brazil stocks in new record territory

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Brazil's stock market cruised into new record territory Wednesday hitting 96,558 points, after Economy Minister Paulo Guedes reaffirmed plans to cut public spending while in Davos.

[SAO PAULO] Brazil's stock market cruised into new record territory Wednesday hitting 96,558 points, after Economy Minister Paulo Guedes reaffirmed plans to cut public spending while in Davos.

Mr Guedes' remarks reassured investors, who had shown disappointment the day before after an opening speech of just six minutes by President Jair Bolsonaro, at the World Economic Forum, and sparing details on economic reforms.

The rightwing president also canceled a press conference in Davos on Wednesday.

Wednesday's rise of 1.53 per cent helped make up for the 0.94 per cent drop recorded on Tuesday.

sentifi.com

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The markets are having a honeymoon phase with the ultraconservative president, who took office on Jan 1 and appointed the very liberal Mr Guedes to lead the economy.

Mr Guedes has pledged to implement a strict plan to clean up public accounts.

It was the tenth time that the Sao Paulo Stock Exchange has hit a new record since the beginning of the year, with an average increase of the Ibovespa index of 9.86 per cent.

The real also firmed Wednesday, reaching 3.81 reais to the dollar, before closing the session at 3.76, an increase of 1.07 per cent over Tuesday.

AFP