Brazil stocks lead gains, NAFTA hopes boost Mexico

Brazil stocks lead gains, NAFTA hopes boost Mexico

Chamber Articles Category: Economic News Post Date: 08/06/18 Source: Reuters By: Bruno Federowski and Paula Laier
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Brazilian stocks led gains in Latin America after state-controlled oil company Petróleo Brasileiro SA reported a larger-than-expected jump in quarterly net profit, while Mexico's stocks and currency climbed on optimism about NAFTA negotiations.
Rising oil prices and diesel subsidies allowed Petrobras, as the Brazilian firm is known, to boost its market share. Also helping to lift sentiment were hopes that Brazilian Senator Ana Amélia Lemos could run as center-right presidential candidate Geraldo Alckmin's running mate, after she said she was close to agreeing to do so late on Thursday. Igor Lima, a partner at Galt Capital, said that could boost Alckmin's clout among women as well as in Brazil's southern region.
Traders have taken a cautious stance ahead of October's presidential election, the hardest to predict in decades. Many fear the winner could reverse recent government moves toward deregulation and belt-tightening that they see as critical to restoring Brazil's investment grade credit rating.
The benchmark Bovespa stock index was up 2.18 percent, by far the largest gainer in the region, while the Brazilian real led the advance in currency markets, closing up 1.34 percent. Read Full Article