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 million of international stocks for OFI Institutional Asset Management in Beachwood, Ohio. “It’s not a favorable scenario for equities.'’
Faster inflation and slower growth on the back of record oil prices have pushed interest rates up worldwide, with the yield on the U.S. 10-year Treasury note, a benchmark for global lending, rising to a six-month high on Oct. 14.
A higher-than-expected inflation index release yesterday in the U.S. raised concern the Federal Reserve may speed the pace of rate increases, reducing the attractiveness for emerging market shares, Rotemberg said.
More: bloomberg.com
Mexico's Bolsa Falls for Week on Profit Concerns: Latin Stocks
Mexico's Bolsa index fell, heading for a second straight weekly decline, on concern that earnings growth may slow and the government may become less favorable to investors after this year's election.
Mexico's Bolsa fell 319.21, or 1.7 percent, to 18,199.12 at 2 p.m. New York time, and has fallen 3.6 percent for the week. Cemex SA, the world's third-largest cement maker, led today's decline. Brazil's Bovespa rose 92.96, or 0.3 percent, to 36,975.27, paring its decline for the week to 0.8 percent.
``You are starting to see opinions that emerging
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
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
Mexico's Bolsa Rises to Record, Led by Walmex: Latin Stocks
Mexico's Bolsa stock index rose above 18,000 for the first time, led by Wal-Mart de Mexico SA, Latin America's largest retailer, on expectations that the central bank will continue cutting interest rates early next year.
The index rose to a record for a third day, gaining 209.82, or 1.2 percent, to 18,029.50 at 3:12 p.m. New York time. The Bolsa has surged 4.8 percent since Dec. 8, the day before Mexico's central bank cut its benchmark lending rate more than expected to 8.25 percent. The cut followed a government report that
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
Bimbo, Grupo Mexico, Embraer: Latin American Equity Preview
The following stocks may make significant gains or losses in Latin America today. Symbols are in parentheses after the company name and stock prices are from the last session.
Mexico
Grupo Bimbo SA (BIMBOA MM): Jose Angel Montano, an analyst with BBVA Bancomer wrote in an Oct. 14 report that increased efficiency in the third quarter would probably allow the company to earn 50 centavos more for every 100 pesos in sales, after subtracting the cost of goods sold, compared with a year earlier. Latin America's largest bakery is scheduled to report third-quarter
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
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
Mexico's Bolsa Has Third-Straight Yearly Gain: Latin Stocks
Mexico's Bolsa fell on the last trading day of 2005 as the index approached its third straight annual gain.
America Movil SA, up 60 percent this year, and Cemex SA, up 55.9 percent, led declines today as investors sold to take advantage of the rally.
The Bolsa fell 130.58, or 0.7 percent, to 17,702.22. The drop follows a year-end rally that began on Dec. 9, the day Mexico's central bank cut its benchmark lending rate more than expected to 8.25 percent. The cut followed a government report that showed the annual inflation rate
Mexicos Stock Index Falls on Political Concern: Latin Stocks
Mexicos stocks fell for a third day on concerns a Felipe Calderon administration would lack support in Congress to pass legislation opening the energy industry to private investment and keeping the budget balanced.
The Bolsa index fell 136.30, or 0.7 percent, to 19,563.85 as of 3:56 p.m. New York time, led by Wal-Mart de Mexico SA, Latin Americas largest retailer. Elsewhere in the region, Brazils Bovespa rose 403.66, or 1.1percent, to 36,544.30.
Mexicos Bolsa last week rose the most in three months after a second vote tally from the July 2
