Petrobras Stock Rally Offsets Political Tension

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The Ibovespa rose for the fourth time in five days as state-controlled Petroleo Brasileiro SA followed oil higher, offsetting increased political tension.

Petrobras, as the Brazilian oil producer is known, contributed the most to the benchmark equity index’s advance as Brent crude advanced to an eight-month high. The rally overshadowed concern it may be difficult to get Congressional support for measures aimed at shoring up the budget and pulling Latin America’s biggest economy out of a recession. Brazilian shares also joined gains in emerging-market assets on speculation that the Federal Reserve won’t raise rates any time soon.

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