Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

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

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
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
0
03/06/2013 | 01:50pm CEST

--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 Jeff.Fick@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on PETROLEO BRASILEIRO SA PET
08/22 CLARIFICATION ON NEWS : Sale process of Termobahia stake
08/21 PETROBRAS : - Public Offering of Debentures with Limited Distribution Efforts bo..
08/20 PETROLEO BRASILEIRO PETROBRAS : Legacy of 2016 Olympics saw rebirth of Rio
08/18 Citigroup tops bank group for Petrobras unit IPO - source
08/18 EXCLUSIVE : Citigroup tops bank group for Petrobras unit IPO - source
08/18 PETROLEO BRASILEIRO PETROBRAS : Former influential Brazil pol accused of bribe-t..
08/18 PETROLEO BRASILEIRO PETROBRAS : Vantage Drilling International Announces Closing..
08/17 PETROLEO BRASILEIRO PETROBRAS : Planned Stoppage Slows Petrobras Production in t..
08/17 PETROBRAS : - Oil and natural gas production in July
08/17 PUBLIC OFFERING OF DEBENTURES WITH L : Bookbuilding Procedure Concluded
More news
News from SeekingAlpha
08/22 Petrobras says Libra test production could start by late September
08/21 PETROBRAS : Strong Growth Going Forward
08/21 REUTERS : Few foreign bids expected for $1B Petrobras gas project
08/19 WEEK 34 BREAKOUT FORECAST : Short-Term Picks To Give You An Edge
08/18 Petrobas preps for fuel distribution IPO
Financials ( BRL)
Sales 2017 299 228 M
EBIT 2017 48 588 M
Net income 2017 18 154 M
Debt 2017 303 381 M
Yield 2017 5,40%
P/E ratio 2017 11,70
P/E ratio 2018 9,20
EV / Sales 2017 1,63x
EV / Sales 2018 1,43x
Capitalization 183 754 M
Chart PETROLEO BRASILEIRO SA PET
Duration : Period :
Petroleo Brasileiro SA Pet Technical Analysis Chart | PETR4 | BRPETRACNPR6 | 4-Traders
Technical analysis trends PETROLEO BRASILEIRO SA PET
Short TermMid-TermLong Term
TrendsBullishNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 12
Average target price 16,8  BRL
Spread / Average Target 22%
EPS Revisions
Managers
NameTitle
Pedro Pullen Parente President, CEO & Executive Director
Luiz Nelson Guedes de Carvalho Chairman
Ivan de Souza Monteiro Chief Financial & Investor Relations Officer
Roberto Moro Chief Engineering & Technology Officer
Segen Farid Estefen Director
Sector and Competitors
1st jan.Capitalization (M$)
PETROLEO BRASILEIRO SA PETROBRAS-8.54%58 196
ROYAL DUTCH SHELL-11.03%228 167
PETROCHINA COMPANY LIMITED0.00%207 860
TOTAL-12.19%128 278
STATOIL-8.78%61 112
ENI-14.74%56 155