Mexico assets down on US economy, emerging markets
Mexican stocks and the peso fell on Friday on concerns of a slowdown in U.S. economic growth and a slump in emerging markets.
The IPC stock market index < .MXX> dropped 1.50 percent to 21,175.59 points and the peso currency was off 0.41 percent at 11.1000 per dollar.
Mexican markets fell sharply on Thursday after the Federal Reserve Bank of Philadelphia said its business activity index slid to -0.4 in September from 18.5 in August, its weakest level in more than 3 years.
Mexicos economy is especially vulnerable to a U.S. slowdown as Americans buy 90 percent of its exports.
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GLOBAL MARKETS-Safe haven assets rally on quake off Mexico coast
Reports of an earthquake in Mexico's Gulf of California boosted demand for safe-haven government bonds on Wednesday, lifting U.S, euro zone bond futures and the Swiss franc sharply higher.
The Gulf of California is a body of water that separates the Baja California Peninsula from the northern Mexican mainland.
March Bund futures hit a session high of 121.97 coming within a whisker of a nine-week peak as news filtered through the markets boosting demand for risk-free assets.
"There's talk of an earthquake in the Gulf of California. This is pushing bonds up," said David
Strong retail sales raise hopes for Mexico economy
Mexican retail sales rose 5.2 percent in September as consumer spending gave a boost to an otherwise tepid economy dragged down by a weak manufacturing sector, the government said on Monday.
The gain matched economists' median forecast.
"Things are turning around," said Christian Stracke, lead emerging markets analyst at Wall Street research firm CreditSights. "We've seen a few months of pretty solid indicators coming out across the board."
Wholesale sales rose 1.1 percent in September compared with the same month last year, and seasonally adjusted data showed retail sales rose 1.73 percent month-on month.
Mexican shoppers alone
Mexicos Cablemas Postpones IPO Amid Tumble in Global Markets
Cablemas SA, Mexicos second-biggest cable company, postponed an initial public offering as a plunge in global stock markets eroded demand for the shares, a banker involved in the transaction said.
The company and shareholders decided not to take the company public at this time, said Pablo Pena, head of investment banking at Vector Casa de Bolsa SA, one of nine banks managing the transaction. He said Cablemas intended to raise as much as $247 million in the sale.
Mexicos benchmark Bolsa stock index has fallen 6.8 percent in the past seven
Mexico Central Bank Reduces Rates to Boost Economy (Update3)
Mexico's central bank cut the benchmark rate from a 29-month high to spur economic growth. It was the first time the bank used a rate target to ease credit.
Banco de Mexico, which normally adjusts rates by changing the amount it lends banks overnight at higher rates, today did so by saying by how much it would allow banks to drive down the overnight rate. In a statement, the bank's board said it would ``allow an easing of monetary conditions of no more than 25 basis points.'' A basis point is
UPDATE 1-Houston Exploration to sell Gulf of Mexico assets
Houston Exploration Co. (THX.N: Quote, Profile, Research) on Tuesday said it plans to sell its entire asset base in the Gulf of Mexico, which has historically accounted for about 40 percent of its total production.
The company said it would open a data room for the offshore assets in January and expects to complete a sale in the first quarter. Wachovia Securities is acting as financial adviser on the sale.
The company said it would use the proceeds to potentially acquire new onshore assets, reduce debt or buy back stock. Its year-end 2004 offshore
Politics Could Undercut Mexicos Gains
As President Vicente Fox prepares to leave office amid political uncertainty here, he is handing his successor one of the healthiest economies in the last six years.
Inflation is tame. Industrial production is sizzling. Tax coffers are bulging with oil revenue. Formal employment is rebounding. Mexicos economy expanded by 4.7% in the second quarter, fueled by strong consumer spending at home and robust demand for its goods abroad.
I dont think anyone expected it to be this strong, said Christian Stracke, emerging-markets analyst with New York-based CreditSights.
The big question: How long can the party last?
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Mexicos economy grew over 5 pct in first quarter
Mexicos economy grew more than 5 percent in the first quarter on a sharp rise in industrial output, the Finance Ministry said on Tuesday.
Its forecast was in line with a central bank estimate last week of 5.2 percent growth in the first three months of the year.
The Finance Ministry also said Mexicos fiscal surplus stood at 51.553 billion pesos in the first quarter, boosted by oil exports, tax collection and the sale of government assets, including its majority stake in airport operator GAP (GAPB.MX: Quote, Profile, Research) (PAC.N: Quote, Profile, Research).
Mexico, Latin
Mexico's Ortiz Says Market `Correction Is Healthy'
Mexican Central Bank Governor Guillermo Ortiz described this week's decline in emerging market bonds and currencies as a ``healthy correction.''
``The markets can't always be going in only one direction,'' Ortiz told reporters after speaking at a conference on competitiveness in Mexico City today. ``It's healthy that there are corrections.''
Mexico's currency slipped 2.7 percent against the dollar in the last five days to 10.7675 pesos, its weakest level since Dec. 28, from 10.4753 pesos. Mexico's benchmark stock index fell 345.46, or 1.9 percent, to 18,205.61 as of 2:11 p.m. New York time
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
Emerging debt-Prices rally on Treasuries; Mexico leads
Emerging market debt prices rallied on Friday, boosted by U.S. Treasuries and led by Mexico, where the government announced its second step this week to reduce its outstanding foreign debt.
Mexican external bonds, which usually move in relatively narrow ranges compared with other major EM credits, roared higher. The benchmark global bond due in 203, jumped 2.500 points to bid 124.50 and the global 2019 rose 4.250 to bid 123.750.
Analysts said the surge was driven by the view that debt will become more valuable as it dwindles in supply.
"It was a Mexico colored day," said
