Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Bolsa de valores de Sao Paulo  >  Petroleo Brasileiro SA Petrobras    PETR4   BRPETRACNPR6

News SummaryMost relevantAll newsSector newsTweets

Petroleo Brasileiro Petrobras SA : Brazil's Real Opens Stronger Ahead of Central Bank Meeting

share with twitter share with LinkedIn share with facebook
share via e-mail
03/06/2013 | 01:50pm CET

--Brazil's Central Bank meets to discuss interest rates, decision after markets close

--Latin America's largest economy remains sluggish, but price pressures on upswing

--Brazilian real opens at BRL1.9619, stronger from Tuesday's close at BRL1.9637

   By Jeff Fick 

RIO DE JANEIRO--The Brazilian real opened stronger against the U.S. dollar Wednesday as a global rally reached the country's shores, but investors were also anticipating central-bank policy meetings at home and abroad.

The local currency shrugged off slight declines in the euro, seen as a barometer for the local currency, as the single currency was caught up in caution ahead of a meeting by the European Central Bank. The real opened trading at BRL1.9619 to the U.S. dollar, stronger from Tuesday's closing price fix at BRL1.9637, according to Tullett Prebon via FactSet.

Strong stock-market gains in the U.S., with the Dow Jones Industrial Average index reaching a fresh record high, spurred gains in equity markets around the world. Stock markets in Asia reached levels not seen since 2008, while European markets also opened in the black. But currency market players around the world were expected to play it close to the vest as the Brazilian Central Bank joined counterparts in Europe, Canada, the U.K. and Japan in holding policy meetings over the next two days.

While Brazil's Central Bank is expected to hold interest rates at a record-low 7.25%, the mood was expected to remain cautious in light of possible changes to the bank's accompanying policy statement, traders said. Previous policy statements have noted that interest rates would be held at current lows for a "sufficiently prolonged period." Should that language be dropped, it would be considered an indication that central bankers have opened the door to higher interest rates.

The government would like to see the central bank keep interest rates low to spark economic growth, but rising inflationary pressures have forced Central Bank President Alexandre Tombini and Finance Minister Guido Mantega to reaffirm the bank's commitment to containing prices. Brazil's economy expanded 0.9% in 2012, the country's worst annual performance since the financial crisis. That was down from 2.7% growth in 2011.

But inflation remains persistent despite the sluggish growth, rising to 6.2% in mid-February after ending 2012 at 5.84%. Central Bank officials insist that price pressures will retreat in the second half of 2013 on the strength of a robust grain and oilseeds harvest, as well as government-ordered cuts in electricity rates.

While some recent inflation measures have showed signs that the pace of price increases is easing, the decision late Tuesday by state-run energy giant Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, to raise domestic diesel prices by 5% will add upward pressure to the inflation mix.

The central bank has kept the real trading between BRL1.95 and BRL2.00 so far in 2013, a level seen as beneficial for local manufacturers and exporters without stoking inflation.

The market will take further direction later in the day as a slew of important economic data is released overseas, traders said. The U.S. Federal Reserve will release its "beige book," a snapshot of the world's largest economy known by the color of its cover. In addition, widely watched payroll figures for February will be released.

Write to Jeff Fick at [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
04:35p STATOIL : Norway's Statoil buys 25 pct. stake in Brazil's huge Roncador field
03:38p PETROLEO BRASILEIRO PETROBRAS : Statoil to pay up to $2.9 billion to triple Braz..
03:02p STATOIL : Acquires 25% of the Roncador Field in Brazil for $2.9B
03:02p Keppel Secures S$130 Million in Projects from Repeat Customers
03:02p PETROBRAS : and ExxonMobil Form Strategic Alliance
02:38p PETROBRAS : - Exercise of Pre-emption Right in the Fourth Bidding Round of areas..
02:38p PETROLEO BRASILEIRO PETROBRAS : Public offering of shares for Petrobras Distribu..
02:37p PETROBRAS : - Sale of 100% equity interest in BSBios Opportunity Disclosure Teas..
02:36p PETROBRAS : and ExxonMobil Form Strategic Alliance
01:00p PETROLEO BRASILEIRO PETROBRAS : PetroquímicaSuape and Citepe sale process Genera..
More news
News from SeekingAlpha
12:35p Petrobras secures deal with Japan's Modec for Libra oil platform
08:23a Total to launch large-scale development of Brazil's Libra oilfield
08:07a Statoil buys 25% stake in Petrobras oilfield for as much as $2.9B
12/15 Petrobras to unveil revised capex plan next week, CEO says
12/15 REUTERS : Chevron nears deal with Schlumberger to drill wells in Brazil
Financials ( BRL)
Sales 2017 284 B
EBIT 2017 47 970 M
Net income 2017 17 689 M
Debt 2017 298 B
Yield 2017 4,48%
P/E ratio 2017 11,71
P/E ratio 2018 8,66
EV / Sales 2017 1,75x
EV / Sales 2018 1,53x
Capitalization 200 B
Duration : Period :
Petroleo Brasileiro SA Pet Technical Analysis Chart | PETR4 | BRPETRACNPR6 | 4-Traders
Technical analysis trends PETROLEO BRASILEIRO SA PET
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 14
Average target price 20,6  BRL
Spread / Average Target 38%
EPS Revisions
Pedro Pullen Parente President, CEO & Executive Director
Luiz Nelson Guedes de Carvalho Chairman
Ivan de Souza Monteiro Chief Financial & Investor Relations Officer
Roberto Moro Chief Engineering & Technology Officer
Segen Farid Estefen Director
Sector and Competitors
1st jan.Capitalization (M$)
TOTAL-4.54%138 380
STATOIL6.94%67 475
ENI-9.89%59 521