General News
Brazil shows signs of fatigue
Summary of original article by Neil Mellor - FT
Although China has tended to be the key focus among the Brics,
Brazil has also been important to global investors recently – and it is
worth noting recent signs of fatigue there, says Neil Mellor at Bank of
New York Mellon.
He points out that Brazil was the biggest gainer
in the MSCI Emerging Markets index in 2009. The Bovespa index soared
100 per cent from mid-March to year-end. “But 2010 has been a different
story, with the Bovespa down 7.5 per cent year-to-date and hovering
near its 100-day moving average,” he says. “The last time the index
succumbed to this technical level, it began a 60 per cent retracement
through the second half of 2008.”
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Presented by Real Trade: 2/19/2010