Brazil's benchmark stock index reached an all-time high on Friday on positive investor sentiment about the new government's pension reform plans and US-China trade talks, while Latin American currencies steadied against the US dollar. The Bovespa, one of 2018's top performing indexes across the globe, hit a record high, crossing the 96,000 mark as investors hoped the new government's pension reforms plans may be revealed earlier than expected.
A government source said on Thursday that Economy Minister Paulo Guedes is expected to detail the reform proposal at the World Economic Forum's annual meeting in Davos next week, sooner that previously suggested. Market sentiment has been positive toward policies and reforms proposed by President Jair Bolsonaro's new government, in particular pension reform, which could bring down the country's high fiscal deficit.
A Reuters poll found that Brazil's sluggish economic is expected to grow 2.4 percent in 2019 versus 1.3 percent last year, provided the new government implements promised reforms and helps expand the private sector. Stocks in Chile climbed to a near four-month high, on track for a fourth straight week of gains with Banco de Chile emerging as one of the biggest gainers.
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