Bovespa Yearend Forecast ‘Out of Reach,’ Goldman Sachs Says
The Bovespa stock index may fail to reach a forecast of 78,000 by yearend due to the prospect of higher Brazilian borrowing costs amid quickening inflation, Goldman Sachs Group Inc. said.
President-elect Dilma Rousseff’s ministerial appointments are “mixed, rather than best-case from financial markets’ point of view, so it’s not clear if fiscal management will be tight enough to take pressure off rates,” analyst Stephen Graham wrote in a note to clients dated yesterday. Graham said his previous estimate “looks increasingly out of reach.”
Emerging-market assets such as Brazil’s are also suffering because of Europe’s debt crisis, speculation that China will move to cool its economy, and military tensions between North and South Korea, Graham wrote.
The Bovespa dropped 0.2 percent to 68,065.45 at 9:18 a.m. New York time.
To contact the editor responsible for this story: David Papadopoulos in New York at firstname.lastname@example.org