Latin American markets are broadly lower today as preliminary
results from the Italian parliamentary elections point to a divided
government, reviving worries over Europe political and economic
The prospects for a hung parliament is chasing investors into
safe haven plays like the U.S. dollar, putting pressure on emerging
currencies such as the Mexican peso and the Brazilian real. Most
stocks are following currencies lower, with Brazil's benchmark
Ibovespa index falling for the tenth session in 11. The Mexican IPC
index also is off about 0.3%, extending its losses after yesterday
falling to its lowest level of the year.
Telecom and utility stocks - typically seen as defensive plays -
are mostly higher today while most energy stocks around the region
are down on demand concerns. Financial stocks are mixed, with ADRs
of several banks, including Banco Bilbao Vizcaya Argentaria S.A. (
), recouping a portion of their steep declines during Monday's
Here's where the regional markets stand today:
- Ibovespa down 377 (-0.7%) to 56,240.5.
- IPC (Mexico City) down 134 (-0.3%) to 43,364.8.
- Santiago Index IPSA down 22.3 (-0.6%) to 3,872.2
- Merval Buenos Aires down 41.7 (-1.3%) to 3,083.
In commpany news, U.S.-listed shares of Mercadolibre Inc. (
) are down about 2% after the online retailer beat EPS estimates
with its Q4 earnings but missed revenue targets. The Argentine
company reported a $0.69 per share profit during its December
quarter, up from a $0.47 gain in the year-ago quarter and topping
the Thomson Reuter mean forecast of $0.61 per share. Revenue rose
20% over the same quarter last year to $103.8 mln, trailing the
Street view by $1.47 mln.
In other company news, shares of Grupo Modelo SAB de CV
(GMODELOC.MX) are up about 0.6% today in Mexican trading amid
reports that negotiations between Anheuser-Busch InBev (
) and the U.S. Department of Justice are close to a settlement
allowing the brewer's planned purchase of Modelo, according to
Reuters, citing two sources familiar with the matter.
BUD nearly two weeks ago revised the deal to address anti-trust
concerns, offering to sell a Modelo brewery to Constellation Brands
). It also would give STZ perpetual rights to Corona and other
Modelo brands in the United States.
The moves followed the Justice Department earlier this month
suing to block the proposed buyout. A federal judge late Friday
agreed to table the government's suit while the two side work to
finalize a deal.
BUD shares are down about 0.4% in U.S. trading today. STZ is up
about 0.3% and near 52 week highs.