Brazil suddenly has the eyes of global investors, let alone EM investors.
Colombian regulators have decided that the American Movil (AMX, quote) unit in the country, Claro, will not be allowed to participate in an upcoming 4G auction. Minister of Information Technology and Communications, Diego Molano, announced that the decision was to correct inequalities in the market for telecoms (Spanish).
Strong talk by ECB President Mario Draghi and a better than expected 2nd quarter GDP report in the United States pushed developed and emerging markets up strongly last week.
Brazilian stocks have been hit harder than other markets in Latin America, save for the obvious fallout in Argentina.
As first quarter data starts to come in on corporate profits and economies, investors may want to reevaluate their positions within emerging markets.
These are exciting times for a market that has lost 9.5% over the last two years between a sagging currency and a drumbeat of setbacks for the local heavyweights. That’s right, we’re talking about Brazil.
Brazil surprised the markets last week with statements leading analysts to believe further rate cuts may be enacted.