BRAZILIAN ACTIONS HALT SLIDE; POLICY TURNAROUND LIFTS DOW 219.62.Byline: Patricia Lamiell Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. The stock market ended a four-day losing streak Friday as investors gained confidence that Brazil, the largest country in Latin America, is getting a handle on its economic problems. Brazil decided to temporarily stop using its cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. to prop up its beleaguered be·lea·guer tr.v. be·lea·guered, be·lea·guer·ing, be·lea·guers 1. To harass; beset: We are beleaguered by problems. 2. To surround with troops; besiege. currency, the real. Investors concluded this would allow interest rates in that country to fall, stimulating new business investment and perhaps helping the country back to economic health. The Dow Jones industrial average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. rose 219.62 points to 9,340.55, making up a large portion of the 522 points it lost earlier in the week. The Dow still ended the week down 302.77 points. It was just last Friday that the Dow hit a new high of 9,643.32 on continued domestic economic strength and high-flying technology shares. The blue chip index, which gained 5 percent in the first week of the year, ended Friday's session just 1.7 percent higher for 1999. Broader indexes also rose sharply Friday. The Nasdaq index advanced 71.38 to 2,348.20. The Standard & Poor's 500 gained 31.07 to 1,243.26. The Sao Paulo Stock Exchange Sao Paulo Stock Exchange See: Bolsa de Valores de Sao Paulo - Latin America's largest - skyrocketed as Brazilian shares began to look like a bargain for foreign investors. The exchange closed up 33.3 percent Friday - the second-highest rise in its history. Brazil rocked world financial markets Wednesday when it devalued de·val·ue also de·val·u·ate v. de·val·ued also de·valu·at·ed, de·val·u·ing also de·val·u·at·ing, de·val·ues also de·val·u·ates v.tr. 1. To lessen or cancel the value of. the real by 8 percent. Two top government finance officials resigned, raising doubts about Brazil's political resolve to get its economy in order. On Wednesday and Thursday, the Dow lost a total of 353 points, as U.S. investors feared that Brazil's problems would spread throughout Latin America, most importantly to Mexico, a key U.S. trading partner. |
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