Brazil stocks hit 6-month high aided by oil,metals

Thu Apr 9, 2009 10:02pm BST
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SAO PAULO, April 9 (Reuters) - Brazil's currency gained and stocks jumped to a six-month high on Thursday as higher oil and metals prices lifted heavyweights Petrobras and Vale, while Itau and Bradesco charged higher following a rally in global banking stocks.

The Bovespa index .BVSP of the Sao Paulo stock exchange rose 3.07 percent to 45,538.71 points, trading at its strongest level since Oct. 2. The index rose 0.8 percent the previous session.

Brazil's Itau Unibanco and other financial stocks surged after U.S. bank Wells Fargo reported better-than-expected preliminary first-quarter results. The Wells Fargo news fueled a jump abroad in bank stocks, helping drive a rally in U.S. and European benchmark equities indexes.

"Despite a lot of uncertainty due to the crisis, the news today helped to consolidate the idea that the short-term situation is much better," said Nicolas Barbarisi, director at Hera Investments.

Brazil's currency, the real (BRBY: Quote, Profile, Research), strengthened 1.45 percent to 2.172 per dollar, its sixth day of gains in seven. The real firmed 0.6 percent the previous session.

Interest rate futures contracts <0#DIJ:> at the BM&F commodity and futures exchange were mixed, one day after benchmark inflation data showed prices rose at their slowest pace in a year and a half.

At the stock exchange, state-run energy company Petrobras (PETR4.SA: Quote, Profile, Research) gained 4.44 percent to 30.84 reais as crude oil prices CLc1 jumped more than 5 percent in New York.

Mining giant Vale (VALE5.SA: Quote, Profile, Research) climbed 5.02 percent to 29.70 reais, tracking gains of more than 3.5 percent in copper and other metals.  Continued...

 
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