Brazil, Mexico’s Indexes Fall on U.S. Inflation: Latin Stocks
Brazil and Mexican benchmark stock indexes fell as higher-than-expected inflation in the U.S. raised concern interest rates may keep rising, reducing inflows to emerging markets.
Brazil’s Bovespa index of the 57 most-traded stocks in the Sao Paulo stock exchange fell 514.20, or 1.7, to 29,727.41 at 2:13 p.m. New York time. The drop was led by state-controlled oil company Petroleo Brasileiro SA. In Mexico, the Bolsa fell 158.93, or 1 percent, to 15,123.80, led by America Movil, Latin America’s largest wireless telephone company.
“Inflation there raises fears of lower growth and higher interest rates,'’ said Pedro Thomazoni, who handles proprietary stock trading at Banco Votorantim in Sao Paulo. The Federal Reserve may accelerate the pace of interest rate increases to curb inflation, Thomazoni said.
Producer prices in the U.S. rose by the most in 15 years last month, a Labor Department report showed, as surging energy prices boosted raw-material costs. The 1.9 percent increase in prices paid to factories, farmers and other producers surpassed the 1.2 percent expected by economists in a Bloomberg News survey.
More: bloomberg.com
Mexico Bolsa Falls on Shift to Brazil, Yields: Latin Stocks
Mexican stocks fell for a second day, led by America Movil SA, as investors sold Mexican stocks to increase positions in Brazil after Fitch raised the South American country's debt outlook.
The Bolsa index of the most-traded stocks in Mexico City fell 346.41, or 2.2 percent, to 15,098.96 at 1:15 p.m. New York time. Elsewhere, Argentina's Merval fell 37.44, or 2.3 percent, to 1606.52.
Mexican stocks extended their decline today after Fitch Ratings yesterday revised the outlook on Brazil's debt to ``positive'' from ``stable.'' Fitch rates Brazil BB-, three levels below
Brazil, Mexico Stocks End Down
Mexico and Brazil stocks slid Wednesday, pulled down by weakness in U.S. equities.
Traders said a late-session dip in the Dow Jones industrial average prompted some selling in Latin American markets.
The Dow lost 1.20 points, or 0.01 percent, to 11,102.51 after rising a total of 230 points the first two days this week.
Brazils benchmark Ibovespa stocks index ended 0.24 percent lower at 36,681 points in thin volume.
More : chron.com
Currency Strategists: BNP Says Mexico's Peso May Fall
The Mexican peso, up 4.5 percent versus the dollar this year, will drop in 2006 as the central bank cuts its benchmark interest rate amid slowing inflation, said Rafael de la Fuente, chief economist for Latin America at BNP Paribas SA.
The peso has dropped 1.4 percent since the central bank lowered its key rate by a greater-than-expected half a percentage point to 8.25 percent on Dec. 9, the fifth reduction since August. Mexico's currency may also decline on concern lower rates will reduce the yield advantage of domestic bonds.
``We still
Brazil, Mexico markets fall, energy boosts Toronto
Brazilian stocks declined Friday, pulled down by a steeper-than-expected decline in U.S. industrial production, a fall in Brazilian retail sales and a growing aversion to risk among investors.
The benchmark Ibovespa index fell 0.4% to 29,772.
The announcement of a 1.3% drop in U.S. September industrial production, compared with a consensus estimate for a 0.4% decrease, dragged Brazilian share prices lower.
The stock market also had to digest a decline in Brazilian retail sales in August, down a seasonally adjusted 0.4% from July, according to data Friday from the Brazilian Census Bureau, or IBGE. It was
Mexico's Bolsa Rises to Record, Led by Walmex: Latin Stocks
Mexico's benchmark stock index rose to a record for a third day, led by retailer Wal-Mart de Mexico SA, on expectations that oil revenue will sustain growth in Latin America's biggest economy.
The Mexican Bolsa rose 120.64, or 0.8 percent, to 15,151.26 at 12:40 New York time. Wal-Mart de Mexico, Latin America's biggest retailer, rose for a fifth day in six as Chief Executive Eduardo Solorzano elaborated on the company's expansion plans in a speech to investors in New York.
The Bolsa is gaining because of global demand for the
Mexico, Brazil Inflation Slows, Paving Way for Rate Reductions
Slowing inflation in Mexico and Brazil, Latin America's two biggest economies, is paving the way for central bankers to cut interest rates and curb gains in their currencies, analysts such as UBS AG's Michael Gavin said.
Government reports scheduled for release today will show Mexico's annual inflation rate dropped to a record low in September while Brazil's rate held near its lowest in 16 months, according to more than a dozen economists surveyed by Bloomberg.
Declining inflation rates may prompt Mexico to reduce its benchmark lending rate for a third straight
Latin American Stocks Decline, Led by Mexico, on Rate Concerns
Latin America's benchmark stock index fell to the lowest level in more than a month as rising interest rates worldwide prompt investors to pull money out of riskier securities such as equities.
The Morgan Stanley Capital International index of Latin American stocks fell 1.7 percent to 1879.60 as of 12:37 p.m. New York time, its lowest level since Sept. 5, led by Mexico's America Movil, Latin America's No. 1 wireless telephone company.
``Investors are getting out of volatility to go to safe havens,'' said Alfredo Rotemberg, who helps manage $220
Brazil Bovespa Falls on Politics; Mexico Falls: Latin Stocks
Brazil's main equity index fell for the first time this week, led by state-controlled oil company Petroleo Brasileiro SA, on concern further revelations from a probe into alleged vote-buying may weaken the government.
The Bovespa index of the most-traded stocks on the Sao Paulo Stock Exchange fell 555.25, or 2.1 percent, to 25,364.70 at 1:22 p.m. New York time. The Bovespa gained 3.9 percent for the week, boosted by a poll Tuesday that showed President Luiz Inacio Lula da Silva's approval rating rose in June, easing concern he would lose support over
Stocks up in Mexico, Chile, down in Brazil, Argentina
Mexican stocks posted a broad rally on modest trading activity Friday to reach yet another record close.
The market's key IPC index closed up 128.93 points, or 0.8 percent, to 16,879.36. Volume totaled 61.1 million shares traded worth 1.06 billion pesos ($100 million).
The IPC last hit a record close on Tuesday, when it finished the session at 16,866.84.
Also Friday, in a widely expected move, the Bank of Mexico said it would allow the overnight rate to fall as much as 25 basis points, which puts the current floor at 8.75 percent. Short-term
Stocks Up in Mexico, Brazil
Mexican stocks rebounded Monday to close sharply higher as investors snapped up shares that had become attractive after two weeks of selling.
The market's key IPC index closed up 2.6 percent, or 389.85 points, at 15,282.73. Volume was 122.9 million shares valued at 2.51 billion pesos.
Source: news.moneycentral.msn.com
