The interest rate cut in the US did the trick…for now anyway.
The Bovespa gained 4.56% today recuperating a good part of what it lost yesterday.
The Real dropped 2.07% to R$ 1.792 gaining back most of its yesterday lost. If the EU doesn’t drop their interest rates, the US$ could be in for more battering in the coming weeks here in Brazil; and around the world for that matter.
The Ag commodities, which lost value yesterday, also have bounced back. There is much talk the more foreign capital will be flowing into Brazil to invest in farms, ethanol plants and other ag related investments.
> Good article in Fortune Magazine about Ag Brazil.
Brazil’s economy is on a much sounder footing than previous “economic crisis”. This meltdown is not over, but for today, the blood has stopped flowing.
So we survive another crisis (for now) to drink good Brazilian beer and eat a lot more Churrasco. (if you don’t know what Churrasco is, do a site search)
