Latin American markets are mixed in late trading Friday, with
Brazil's Ibovespa Index falling nearly 1% today, snapping a
three-day rally, while the primary market gauge for Mexican stocks
is narrowly higher today after the country's central bank
unexpectedly cut its benchmark interest rate for the first time
Banco de Mexico reduced its overnight lending rate by 50 basis
points to a record-low 4.0%, a move forecast by seven of 25
analysts in a Bloomberg survey. Most had expected the rate would
stay on hold.
"This change recognizes the mid-term achievements in combating
inflation and helps the economy adjust to a scenario of less
economic growth and inflation," central bankers said in a statement
accompanying this morning's decision.
Here's where the regional markets stand today:
- Ibovespa down 537 (-0.9%) to 58,309.8.
- IPC (Mexico City) up 12.5 (+0.03%) to 43,980.
- Santiago Index IPSA up 12.99 (+0.3%) to 4,508.70.
- Merval Buenos Aires down 13.5 (-0.4%) to 3,314.7.
Regional airline GOL Linhas (
) is one of the biggest drags on Brazilian stocks today, down 5% on
the NYSE. Residential homebuilder Gafisa SA (
) also is down nearly 2% while mining giant Vale SA (
) is off more than 3%, following a report yesterday by Morgan
Stanley concluding iron ore prices may have peaked as China slows
it buying following a restocking spree.
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