Latin America: Day X for emerging markets
Mar 25th, 2010 | By admin | Category: Reviews and ideasÂÂ
Thursday, 4 February, the stock markets of Latin America have shown a strong downward motion. In particular, the Brazilian market has fallen off the strongest manner for the quarter. Region shook the massive sale on a background of doubt investors in the prospects for economic recovery, external news background was worse than ever, given the rumors and concerns about the national debt and budget deficits of some countries in Europe. Data on the U.S. labor market over the past week "finished off" session.
As a result of trading a key index of Brazil Bovespa fell 4.7% to a level of 63,934.01 points, the Mexican Bolsa has lost 2,2%, and Chilean Ipsa lost 2%. As part of the Brazilian Bovespa no company closed the session at the Green Zone. Regional indicator MSCI Latin America has collapsed on 5,5%. Brazilian real continued its descent against the dollar, reflecting the decline in demand for high-risk assets in emerging markets.
Reduced prices for oil and metals in New York has had a devastating impact on commodity quotes. Shares of Brazilian state-controlled Petroleo Brasileiro oilman fell by 5,1% and reached a 5-month low. The world"s largest iron ore producer Vale collapsed 4,2%.
Sector airline also was among the outsiders session after the publication of negative statistics on passenger traffic, in particular, the second largest in the Brazilian airline Gol Linhas Aereas Inteligentes has lost 4,8%. Shares of the largest Brazilian airline Tam fallen to 7,9% is not without influence on the news that its unit Multiplus during placement of shares attracted less money than expected.
Among the other victims of the Brazilian sale include residential builder and operator of Rossi railways ALL, lost 7,7% and 4,9% respectively.
At the auctions in Mexico is also dominated by the bears, while the Mexican currency closed at a minimal level since November.
Mexican telephone operator Telmex has collapsed to 5% after it reported lower earnings for the fourth quarter to 3.9% and the loss of more than one million subscribers over the past year.
Sale in Mexico, walked across all major sectors. Largest cement maker Cemex has lost 4,2%, the leading mobile operator America Movil remained without 2,2%. Largest retailer Wal-Mart de Mexico went on to minus 2,5%.
| Index | Country | Closing | Change (items) | Change (%) | |
|---|---|---|---|---|---|
| MerVal | Argentina | 2236.96 | -88.83 | -3.82% | -3.61% |
| Bovespa | Brazil | 63934.01 | -3174.55 | -4.73% | -6.79% |
| IBC | Venezuela | 58602.67 | -798.8 | -1.34% | 6.40% |
| IGBC | Colombia | 11333.99 | -167.65 | -1.46% | -2.31% |
| Bolsa | Mexico | 30603.71 | -683.33 | -2.18% | -4.72% |
| IGBVL | Peru | 14086.5 | -456.53 | -3.14% | -0.57% |
| IGPA | Chile | 17499.33 | -288.97 | -1.62% | 5.22% |
| IPSA | Chile | 3774.2 | -77.4 | -2.01% | 5.38% |
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Forex - results of the day
The forecasts of analysts: At the opening of Russia"s market will not be able to avoid a collapse of the indices
Figures for the U.S. labor market may revive the market, if you still will be good
During the day the Russian market is expected negative dynamics on the full range of shares on the background of speculative sales
In the future, the MICEX index may go below 1,365 points, after which the guide will be the mark of 1300 points
The Russian market will again follow the dynamics of quotations of oil futures and the U.S.
