Latin American markets are broadly lower late Wednesday, joining
a world-wide rout for equities after the International Monetary
Fund cut its outlook for global growth. Resource-related stocks, in
particular, are getting battered on demand concerns after the IMF
trimmed its 2013 forecast for global growth by 0.2 percentage
points from its prior predictions to 3.3%. It also cut its 2014
forecast to 4.0% from 4.1%.
Among the biggest losers today are ADRs of Brazilian miner Rio
), sliding about 5% and nearer year lows on the NYSE. Chilean miner
Southern Copper Corp (
) has also falled around 5%.
Financial stocks are broadly lower ahead of the Brazilian
central bank issuing its latest decision on interest rates after
the market close.
Here's where the regional markets stand today:
- Ibovespa was down 1,111.16. Now down 1,227.9 (-2.3%) to
- IPC (Mexico City) was down 676.79. Now 790.34 (-1.8%) to
- Santiago Index IPSA down 45.7 (-1.1%) to 4,217.7.
- Merval Buenos Aires down 41.2 (-1.2%) to 3,432.2.
In other individual company news, U.S.-listed shares of Grupo
Aeroportuario del Centro Norte (
) are now down near 8% after Citigroup reportedly cut its rating
for the Mexican airport operator to Sell from Neutral with a $28 a
share price target.
Citigroup also lowered its rating for OMAB rivals Grupo
Aeroportuario del Pacifico (
) and Grupo Aeroportuario del Sureste (
) to Sell, sending shares of both firm lower. At last look, PAC was
down 4.5% while ASR is down 4%.