The Bovespa Index is the flagship index of the Brazilian stock exchange, known by its acronym, BM&FBOVESPA. The index includes 68 of the 370 companies listed on the exchange, which represent roughly 70% of the exchange’s total capitalization and 80% of its trades. The Bovespa is calculated in reference to prices on February 1, 1968.
Overnight Asian and emerging markets continued to climb higher on the hope key global central banks will initiate a new round of easing.
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.
Asian equity markets and emerging markets ripped higher on suggestions European Union leaders are preparing to take actual action for the first time to take control of the region’s debt crisis.
Asian and emerging markets overnight got their first chance to trade on European Central Bank President Mario Draghi’s pledge of “whatever it takes to preserve the euro” — the ECB will defend the euro and keep the euro zone intact.
Overnight emerging markets trading was interesting to say the least. With multiple straight down sessions in a row and Japan’s NIKKEI suffering the most — five straight sessions to the downside — market participants began to pick through the rubble after strong earnings from Caterpillar (CAT, quote) and Boeing (BA, quote).
Overnight markets in Asia took a beating across the board on escalated fears the emerging market of Greece will not be able to pay off its debt. There are growing concerns the euro zone will be forced to cut Greece loose or approve some kind of debt forgiveness, wiping out money owed for the bailout.
It’s been over three years since China’s Shanghai Composite went as low as it went overnight (2174.96, -1.74%). Premier Wen Jiabao’s negative comments concerning Chin’s economy along with several corporate profit warnings increased market volatility.
Asian markets found relief overnight and climbed higher in a volatile fashion on mixed economic data from China. The country’s GDP expanded by 7.6%, in line with most economists’ surveys for the second quarter.
Overnight market participants were in for surprise in both the Asian and European sessions, sending all but one market into a sea of red. China was the exception, rising from the carnage by nearly a half percent.