Brazil Stocks Rise Most in Americas on Revived Impeachment Betsby
Court said request to oust Vice President should be examined
State-controlled Petrobras contributed most to gauge's gains
The Ibovespa climbed the most among major benchmarks in the Americas as a high court decision fueled wagers that Brazil is getting closer to a change in government.
State-controlled oil producer Petroleo Brasileiro SA contributed the most to the gauge’s advance after saying it has no plans to reduce fuel prices. Suzano Papel e Celulose SA and Fibria Celulose SA, two of the world’s largest pulp producers, posted the biggest losses in the benchmark stock index on speculation that revenue from abroad will be reduced.
The Ibovespa reversed losses after Supreme Court Justice Marco Aurelio de Mello said that Lower House president Eduardo Cunha should analyze a request to impeach Vice President Michel Temer. President Dilma Rousseff is already fighting an effort to oust her because of alleged fiscal impropriety amid a corruption scandal that has paralyzed the country. Some analysts say that it will take a new administration to revive an economy that’s in its deepest recession in a century.
"Political news is the biggest driver for stocks nowadays," Luis Gustavo Pereira, an analyst at the brokerage Guide Investimentos, said from Sao Paulo. "Investors are eager to see the end of this crisis we’re in."
The Ibovespa added 0.6 percent to 49,053.62 at the close of trading in Sao Paulo as 32 of its 61 stocks climbed. Petrobras, as Petroleo Brasileiro is known, rose 3.3 percent to 7.83 reais. Suzano and Fibria dropped at least 4 percent as commodity prices declined.
The index earlier fell as much as 1.3 percent, following a global rout, as worse-than-expected economic data in the U.S. and Germany this week and comments from International Monetary Fund head Christine Lagarde highlighted greater risks to economic growth worldwide. Brazil’s gross domestic product is forecast to shrink 3.7 percent this year after contracting 3.8 percent in 2015.