Latin American markets are broadly lower after the International
Monetary Fund trimmed its growth forecast for China this year by
0.25 percentage points to 7.75%, sparking fresh worries that demand
for raw goods produced throughout the region and sold to the
world's second largest economy won't be increasing any time
The IMF forecast remains above the Chinese government's own
projections for 7.5% growth this year, but is largely in line with
other recent revisions, including those from America - Merrill
Lynch, which pared its forecast this month to 7.6% from 8%, and
Standard Chartered, which cut its estimate to 7.7% from 8.3%.
Here's where the regional markets stand today:
- Ibovespa was down 1,019.07 a short time ago. Now -1,092.50
(-2%) to 54,958.9.
- IPC (Mexico City) was down 190.99. Now down 226.7 (-0.6%) to
- Santiago Index IPSA down 13.9 (-0.34%) to 4,124.9.
- Merval Buenos Aires down 23.70 (-0.7) to 3,397.9.
New economic data from the region also is weighing on equities
today, with the latest GDP figures from Mexico continuing to show
economic growth slowing.
Gross domestic product fell for the fourth time in a row on an
annual basis, while on a quarterly basis, the data posted its
fourth quarterly growth below 1% - making it increasingly likely
Mexico will have a tough time reaching 3% yearly growth this
Also, the Brazilian Institute for Statistics and Geography
(IBGE) reported a 5.8% unemployment rate in April, up from the
prior month but remaining quite low relative to recent Brazilian
Among individual stocks today, Ecopetrol SA (
) is narrowly lower today, with U.S.-traded shares of the Columbian
energy company slipping about 0.2% - giving back an early 0.7% gain
- after closing on a COP$1.84 trillion ($37.5 bln) liability
management transaction and a loan agreement for with a consortium
of seven Colombian banks.
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