Stronger-than-anticipated industrial numbers from China had a nice side effect for Brazil and its related exchange traded funds (ETFs): it heightened investor risk appetite
Chinese factory output growth surged to a 19-month high in October. China, the world’s third-largest economy and a voracious commodities consumer, is widely considered a driver in a global economic recovery, reports Luciana Lopez for Reuters. The numbers gave investors the confidence they were seeking to move toward greater emerging market risk.
President Luiz Inacio Lula da Silva is confident that Brazil’s economy will grow by 5% in 2010 and expects foreign reserves to reach $300 billion, further signaling a recovery for the Latin American country, reports Alex Lawler for Reuters .(Why Brazil is worth considering).
Brazil’s strong pace of recovery is another signal that the rapidly growing country has emerged from a recession; it posted 8%-10% growth in the third quarter, reports Industry Week. (Read about how Brazil’s middle class will help to benefit ETFs).
For more stories about Brazil, visit our Brazil category.
- iShares MSCI Brazil Index (NYSEArca: EWZ): up 120.8% year-to-date
- Market Vectors Brazil Small Cap (NYSEArca: BRF): up 29.5% since inception
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.