Brazilian stocks rebounded on Friday from two straight days of declines, helped by firm markets abroad and US jobs data that may forestall any near term interest rate hikes in the United States.
Traders said the market was volatile, however, and had yet to find its footing after resurgent worries about inflation, government economic policy and the future of US rates rattled the market near the end of last month.
The Sao Paulo Stock Exchange's benchmark Bovespa index was 1.21 percent higher at 21,346 points in early afternoon trade, recovering from a fall at the open. "It's turning around after those sharp falls," said Flavio Barros, a trader at Clickinvest brokerage in Sao Paulo.
He said the US jobs growth numbers released earlier on Friday were neutral to positive for the Brazilian market, as the weaker-than-expected increase in job creation may force the US Federal Reserve to leave interest rates at an all-time low for a longer period.
Last month, investors were unnerved when the Fed hinted it could raise rates sooner than thought, luring investment away from emerging markets like Brazil.
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