Bloomberg reported that Brazilian stocks rose, sending the Bovespa index toward a fourth week of gains, after economists boosted their estimates for economic growth and analysts said the outlook for global demand will push up steel prices.
Gerdau SA led gains on the index after Bank of America Corporation said Latin America's biggest steelmaker should report strong third quarter earnings. Iron ore miners Vale SA and MMX Mineracao & Metalicos SA gained more than 1% as metal prices advanced. OdontoPrev SA jumped as much as 27% after Banco Bradesco SA offered to buy 44% of the insurance company.
In Brazil, economists raised their forecast for economic growth in Latin America’s biggest economy this year to 0.12%, up from 0.10% last week.
Bank of America Corporation said that Gerdau may report strong third quarter earnings with margins on earnings before interest, tax, depreciation and amortization reaching 17.5%.
Gerdau and Usinas Siderurgicas de Minas Gerais SA were reiterated at buy at Deutsche Bank AG, which said the outlook for steel demand in 2010 is positive. Usiminas, as Brazil’s second biggest steelmaker is known, rose 0.6% to BRR 52.73.
