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7 de outubro de 2011Brazilian and Mexican stocks closed higher Wednesday, tracking a surge on Wall Street following brighter economic data from the U.S., a key export market for regional companies.
Brazil’s Bovespa and Mexico’s IPC had each faced fourth consecutive day of declines, but late-session gains allowed them break the losing streaks.
The Bovespa BR:BVSP +2.67% rose 0.7% to 51,013.85, and the IPC MX:IPC +0.47% picked up 0.1% to 33,000.29.
In Mexico City, shares of cement maker Cemex CX +1.20% rose 1.3% and Grupo Financiero Banorte MX:GFNORTEO -0.40% advanced 1.9%. But wireless services provider America Movil’s shares AMX -0.92% finished down 1.9%, though they pared steeper losses.
In Sao Paulo, most shares in the heavily weighted steel sector turned higher, with iron-ore miner Vale VALE +3.24% extending gains to 2.3%. Shares of oil producer Petrobras PBR +5.69% remained in the red, losing 1.8%, but came off their worst levels of the session.
The markets had started higher Wednesday, rising with a turnaround in U.S. stocks after the Institute for Supply Management said its gauge of U.S. service industries slipped to 53 in September from 53.3 in August. A survey of economists conducted by MarketWatch had expected a reading of 52.7%.
Separately, a report from Automatic Data Processing showed job growth in the private sector continued at a modest pace in September. Payrolls increased 91,000 in September, above the anticipated gain of about 75,000. Read more about the ADP jobs report.
The ADP report arrived ahead of Friday’s monthly jobs report from the U.S. government. Economists polled by MarketWatch expect low overall growth of 59,000 in September.
Improvement in the U.S. labor market is important for the Mexican economy in particular as the U.S. is Mexico’s largest trading partner.
While Brazilian and Mexican stocks had struggled throughout the session, U.S. stocks powered higher, extending gains from Tuesday’s rally that was fueled by reports that European officials were examining a joint effort to recapitalize regional banks as they grapple with the impact of the euro-zone debt crisis.
The S&P 500 Index SPX +0.59% jumped 1.8% and the Dow Jones Industrial Average DJIA +0.22% gained 1.2%.
Not all data released Wednesday were upbeat. A report from Challenger Gray & Christmas Inc. showed a climb in planned layoffs in the U.S. last month. Meanwhile, final readings of purchasing-managers indexes for September confirmed contraction in private-sector activity in the euro zone.
Jennifer Lee, senior economist at BMO Capital Markets, noted the jobs component of the ISM report came in at 48.7, falling for a third straight month. The reading was also below the 50 level for the first time since August 2010. A reading of 50 or above indicates expansion.
“This alone suggests that the job growth was weak in September,” she wrote to clients.
In Chile, the IPSA CL:IPSA +2.90% finished 2.6% higher at 3,698.75,
