Latin American Markets Slump After IMF Trims Global Growth Projections

By Staff,

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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 Tinto ( RIO ), sliding about 5% and nearer year lows on the NYSE. Chilean miner Southern Copper Corp ( SCCO ) 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 52,762.90.

- IPC (Mexico City) was down 676.79. Now 790.34 (-1.8%) to 42,455.2.

- 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 ( OMAB ) 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 ( PAC ) and Grupo Aeroportuario del Sureste ( ASR ) to Sell, sending shares of both firm lower. At last look, PAC was down 4.5% while ASR is down 4%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: ASR , OMAB , PAC , RIO , SCCO

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