Brazil stocks, currency fall with external spaces after U.S. data

The bag and Brazil's currency fell on Wednesday, affected by external mood after disclosure worse-than-expected U.S. retail sector. The benchmark index of the Bolsa de Valores de Sao Paulo, the Bovespa, lost 0.32 percent to 63479.46 points, which returned some of the gain of 1.15 percent on Tuesday.

The financial remittance of the session was 4,700 million reais (U.S. $ 2.664 million), below the average of 6,500 million reais verified so far this year. July was the month with the rotation of the Bovespa in the year, with an average of 5,100 million reales to the 13th. In May the busiest month so far this year, the average transaction amounted to 7,300 million reais. "Today the market continued movements outside a lot," said Newton Rosa, chief economist at SulAmérica Investimentos.

"The outside was very volatile. At one point (the influence) came from the results of companies such as Intel, which led the market in the morning. Then reported retail sales data (U.S.), which were lower than expected by the market, "he said. The U.S. retail sales fell 0.5 percent in June, more than expected.

Later, the Fed revised downward the estimate of economic expansion and projected growth of gross domestic product (GDP) up 3.5 percent in 2010. In the local market, shares of mining company Vale lost 0.65 percent to 38.30 reais, while Petrobras oil company closed about stability, to 27.30 reais.

The titles of the steel industry were the most influential in the fall of the index, most notably those of the Usiminas steel plant, which tumble down 3.08 percent. Some of the titles were the biggest gainers of local retailers, such as Lojas Renner, which jumped 4.47 percent.

The real, meanwhile, has depreciated 0.63 percent, affected by external suspicion after the release of the fall in U.S. retail sales.

The real closed trading at 1.762 / 1.764 per dollar in the interbank market, then recovered 0.68 percent on Tuesday. Globally, the dollar fell 0.34 percent against a basket of reference currencies. ($ 1 = 1.764 reais)

Brazil Industrial Production up 1.2 percent in August vs July

Industrial production in Brazil rose in August by 1.2 percent from July, seasonally adjusted, the eighth consecutive month of monthly gain, said Friday the Brazilian Institute of Geography and Statistics (IBGE).
The market was waiting for a production increase of 0.8 percent, according to the median forecast of 20 analysts polled by Reuters. Forecasts ranged from 0.2 percent reduction and a 1.8 percent expansion.
Faced with the same month of 2008, Brazilian industrial production in August shrank 7.2 percent.
The fall was smaller than the 7.5 percent resulted from the median forecast of 27 analysts in comparison ineranual, which varied between 6.2 and 9.1 percent shrinkage.

EU was EUR 9,500 million deficit in goods trade with Brazil in 2008

The European Union (EU) registered a deficit of about 9,000 million euro in their exchange of goods with Brazil in 2008, a period in which he obtained a surplus of nearly 3,000 million euros in trade in services, according to Eurostat data, the EU statistics office.
In addition, Brazil was the tenth largest trading partner of twenty-seven in the first half of 2009, representing 1.8% of exports and imports 2.1% of total EU trade.
During the summit between the EU and Brazil to be held in Stockholm on October 6, Eurostat published data for investment and trade between both sides.
Between 2000 and 2008, the value of exports of EU goods to Brazil increased by 56%, while imports almost doubled, so that the EU trade deficit with Brazil grew at that time and spent 1,800 million to 9,500 million in 2008.

Moreover, in the first six months of 2009, the EU trade deficit with Brazil was reduced to 3,300 million euros versus 5,500 million in the same period the previous year.
As pointed out by Eurostat, the decline in value of EU trade with Brazil from the first half of 2008 and 2009 "is in line with the general downward trend of the total EU external trade during the same period observed .

Brazil's share in total foreign trade of goods from the EU went from around 2% between 2000 and 2008.During the first six months of this year, Germany was the main European exporter to Brazil (3,100 million euros and 33% of EU exports), followed by France and Italy (1.200 million and 13% each).
The main importer was the Netherlands (2,700 million and 21% of total EU imports), ahead of Germany (2,500 million euros and 20%), the United Kingdom and Italy (1.300 million and 10% each ), France (1.200 million and 10%) and Spain (1,100 million and 9%).

Germany also registered the largest trade surplus with Brazil (600 million) during the first part of this year, followed by Austria (200 million).
The main deficits were registered in the Netherlands (2,100 million), the United Kingdom (600 million), Spain (500 million) and Belgium (400 million).
Moreover, in 2008 the EU exported services to Brazil for 9,000 million euros, while imports were 6,100 million, representing a surplus of 2,900 million euros of the Twenty in their exchange of services with the Latin American country, versus 600 million recorded in 2006 and 1,600 million in 2007.

Brazil accounted for about 1.5% of total services trade between the EU and third countries.
Finally, foreign direct investment from the EU to Brazil, amounting to 15,300 million euros in 2007, escalated to the divestiture of 3,400 million euros in 2008, while Brazilian direct investment in the EU grew from 1,600 million in 2007 to 6,900 million in 2008.