Internationally-based global investment banking, securities and investment management firm Goldman Sachs Group Inc., said Wednesday gains from Brazilian mining companies, banks, homebuilders and transportation companies will likely be overshadowed by retailers, which led this year's advance in Latin America's largest market. Goldman has also commented that Brazil's Bovespa stock index is expected to rise 10 percent by the end of year.
As the Bovespa index grew 4.4 percent this year, consumer goods companies led MSCI Brazil's 4.5 percent rise in the same period.
Homebuilders, banks and transportation stocks led gains today on the Bovespa, and Brazilian mining company Vale, the largest iron ore producer in the world grew 0.7 percent to 47.72 points.
Due to lower interest rates a still considerably weak US dollar, commodities have gained since the US Federal Reserve announced September 21 that lower inflation would necessitate a looser monetary policy. The Fed will keep its interest rate on overnight loans between banks close to zero until at least the end of 2010, longer than previously estimated.
Goldman's strategist Stephen Graham has said that Brazilian steelmakers won't benefit as much from higher commodity prices because the rising iron ore and coal costs as well as steel imports will "pressure" domestic pricing.