Brazil stocks up on government asset-sale plan

Brazillian stocks rose with a massive sale of state assets on Thursday. It is believed this is a government-run attempt to rein in public debt growth and cut a widening budget gap. However, with President Michel Temer seeking to reduce state involvement in the economy, it becomes a question of who will win out. 

Brazil's benchmark Bovespa stock index rose 1 percent to a new-six year high with shares of Eletrobras, the power utility, as one of the biggest gainers. Optimism infiltrated wallets as a decision by the lower house of Congress to approve the main text of a bill creating a new market-based lending benchmark for state development bank BNDES that would considerably reduce discretionary subsidies.

"Coupled with well-behaved inflation, this sets the stage for the central bank to cut interest rates even more," analysts at the Magliano brokerage wrote in a client note.

Read more at Reuters.