Minister of Finance says Brazil has problems that many other countries would like to have
12 de maio de 2011Governo quer desonerar exportações
16 de maio de 2011Latin American stocks fell early on Friday, as regional interest rate hikes and lingering inflation worries kept investors uncertain despite positive growth data from the euro zone.
The MSCI Latin American index .MILA00000PUS shed 0.59 percent after closing at its lowest since March 18 in the previous session.
Despite positive data on euro zone economic growth, particularly in France and Germany, investors are still wary, said Julio Hegedus, chief economist with InterBolsa in Sao Paulo. [ID:nLDE74C0FI]
Latin American governments are still fighting persistent inflation that has rattled local markets. On Thursday, Chile surprised markets with a third aggressive rate hike and Peru kept up its monetary tightening to fight inflation expectations driven by global food and oil prices. [ID:nN12261391]
And the outlook abroad is still cloudy, with rumors swirling of a Greek debt restructuring. [ID:nLDE74C0RD]
“Investors are totally cautious. They’re not out buying,” Hegedus said. With local interest rates set to keep rising, Brazilian stocks were likely to see “a year of adjustments,” rather than big, across-the-board gains, he said.
Brazil’s benchmark Bovespa stock index .BVSP slid, down 0.98 percent to 63,375.87, despite brief gains at the open.
If the index falls below 63,000 points, Hegedus said, the Bovespa could slip to 60,000.
Shares of mining giant Vale (VALE5.SA), the world’s largest producer of iron ore, fell 0.91 percent, though still off the nearly eight-month-low touched in the previous session.
Banks also dropped, with Itau Unibanco (ITUB4.SA), Brazil’s biggest private-sector bank by assets, falling 1.09 percent. Rival Bradesco (BBDC4.SA) gave up 1.3 percent, with Banco do Brasil (BBAS3.SA) down 1.77 percent.
Mexico’s IPC index .MXX traded near flat in a choppy early session. The IPC has found support above 35,000 points this week after slumping nearly 5 percent this month to its lowest level since October.
Shares in billionaire Carlos Slim’s fixed-line phone company Telmex (TELMEXL.MX) rose 1.37 percent after the company said late Thursday that a local court has ordered the government to respond in 24 hours to its request to be allowed to offer pay television services in Mexico. [ID:nN12137698]
The outlook for Slim’s America Movil (AMXL.MX), which accounts for nearly one-quarter of the IPC, will be key. Shares in America Movil dipped 0.24 percent after closing in the previous session at its lowest since March 2010.
The stock has shed about 12 percent since last month on concerns regulators could crimp its power in Mexico’s mobile phone market. [ID:nN12110496]
Chile’s IPSA .IPSA dipped 0.06 percent, sticking to its range of the previous week.
Shares of Banco Santander Chile (STG.SN) led losses, down 0.98 percent.
