Brazil markets rally after post-poll slump

GMT 15:59 2014 Tuesday ,28 October

Arab Today, arab today Brazil markets rally after post-poll slump

Brazil's President Dilma Rousseff
Sao Paulo - AFP

Brazilian stocks rose Tuesday, recovering some ground lost the previous day as traders digested the re-election of left-wing President Dilma Rousseff.
Sao Paulo's benchmark index was up 1.8 percent in mid-morning trading, with volume also on the rise compared with a Monday session when stocks plunged six percent at the opening bell and closed down 2.77 percent.
On the currency market, the Brazilian real -- which had slid to a nine-year low on Monday -- added 1.33 percent to stand at 2.490 to the dollar, as analysts pondered who Rousseff would select as finance minister for her second term.
Rousseff, 66, narrowly saw off Social Democrat challenger Aecio Neves, the market favorite, in a run-off election Sunday.
She said Monday she hoped that "calm" would return to the markets, adding she planned to announce by year's end measures designed to pull the economy out of recession.
The first woman to lead the world's seventh-largest economy also promised to hold a "dialogue" with all sectors of the economy once her second term officially begins on January 1.
"I intend to unveil very clearly what measures I am going to take," she said, seeking to downplay the market turbulence.
"Markets fell in the US, markets fell in Europe. The whole world is facing a lot of difficulties," she said.
Brazil has endured four years of anemic growth under Rousseff having seen several years of strong growth before she took office -- GDP soared 7.5 percent in 2010.
The economy entered recession in the first half of 2014, and growth this year is expected to come in barely above zero.
As the market clambered upwards Tuesday, Raphael Figueredo, analyst with Clear Corretora, told Folha de Sao Paulo daily: "Bit by bit we are going to revert to normal."

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