Brazil Stocks Reach Three-Year High on Interest-Rate Speculation
- Fuel prices to be cut ahead of central bank policy meeting
- Commodity producers including Vale follow iron-ore advance
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Brazil’s Ibovespa advanced to the highest level in more than three years on speculation that the central bank may cut interest rates next week more than previously expected after a surprise reduction in fuel prices.
State-controlled oil producer Petroleo Brasileiro SA contributed the most to the benchmark equity index’s advance after announcing a new policy that will ensure fuels aren’t priced below international levels. Retailer Lojas Americanas SA gained the most among companies that depend on domestic demand as swap traders slashed their estimates for borrowing costs. Miner Vale SA and steelmaker Gerdau SA followed metals prices higher.