http://bit.ly/nzk3D7
RIO DE JANEIRO -(Dow Jones)- Brazilian stocks fell sharply Friday following disappointing U.S. payroll data sent stock markets and commodities prices down around the world amid fears the world wide financial scenario is taking a turn for the worse. Brazil's benchmark stocks index Ibovespa slid to 56,531 points, two.73% reduce than its Thursday shut of 58,118 points. The industry gave back almost all of Thursday's virtually 3% gain, right after the country's central lender unexpectedly reduce curiosity charges to bolster development. Economists explained markets worldwide ended up dominated by unfavorable U.S. payroll figures announced early in the day. Whilst U.S. unemployment amounts remained at 9.1% in August, secure from July, the number of careers also remained steady, disappointing the marketplace soon after economists had predicted creation of 80,000 new careers during the month. "The payroll figures indicate the U.S. financial system will be weaker for the next couple of months," said Raphael Martello of Tendencias Consultoria. "That is hitting commodities. Investors are quitting commodity-exporting countries." "The U.S. dominated (markets) and brought virtually the total entire world down. We arrived down on that also," the Tendencias economist stated. Damaging fallout from the U.S. data is expected to carry on up coming week, Martello explained. In accordance to Jankiel Santos of Espirito Santo Investment Financial institution, the weak U.S. info signals a worsening of the crisis and "a new chance of entire world collapse". Sentiment was also depressed by a Greek minister's declaration that the European nation's financial system may possibly shrink as considerably as 5% this yr amid continuing financial debt worries, a larger decline than expected. Commodities producers and exporters ended up specially touched by the malaise. Oil and gasoline producer Petroleo Brasileiro (PBR, PETR4.BR) sank three.eighteen% to twenty.37 Brazilian reais ($ twelve.42). Meat packer JBS (JBSAY, JBSS3.BR) fell three.42% to BRL4.24. Iron ore miner MMX Mineracao e Metalicos (MMXM3.BR) sank 5.08% to BRL8.03. Miner Vale (VALE, VALE5.BR) fared somewhat better, trimming one.56% to BRL40.35. Home development organization Rossi Residencial (RSID3.BR) shed 6.94% to BRL12.20 in spite of this week's base curiosity fee slice in Brazil, which really should stimulate house purchases. A single of the few bright performers on the Bovespa exchange was airline TAM (TAM, TAMM4.BR) which rose two.61% to BRL35.40 following reports that its proposed merger with Chilean flagship carrier LAN Airlines (LFL, LAN.SN) is expected to achieve approval from Chilean authorities in the imminent potential. Copyright &duplicate 2011 Dow Jones Newswires