Latin American Markets Up, But Off Day Highs; Supported By Rise in Chinese Manufacturing Data, But U.S. Concerns Cap Gains

By Staff,

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Latin American markets are higher today, supported by positive manufacturing data out of China this weekend, with the HSBC Purchasing Managers' Index rising a full point to a 50.5 reading in November and lifting hopes for rising demand for raw goods from the region. But most of the markets are off day highs amid investor and trader concerns about poor U.S. manufacturing numbers and the slow pace of the fiscal negotiations between the White House and Republicans.

Here's where the regional markets stand today:

- Ibovespa was up 702.57. Now up 434 points to 57,909.

- IPC (Mexico City) was up 371.92. Now up 342 at 42,176.

- Santiago Index IPSA was up 6.93. Now up 10.96 to 4,148.99.

- Merval Buenos Aires was up 2.52. Now up 0.74 to 2,420.

In company news, ADRs of Vale SA ( VALE ) have turned negative to flat with the Brazilian mining giant saying it is considering selling its 22% stake in Norwegian aluminum group Norsk Hydro because it does not fit with its core business.

Separately today, VALE chief financial officer Luciano Siani said the company's capital spending peaked in 2011 and 2012. Speaking at news conference in New York, Siani said growth would be slow in 2013 but likely would resume in 2014. Vale earlier cut its 2013 capital expenditures by 24% amid a global slowdown and a drop in iron ore prices.

Also today, analysts at Credit Suisse today tweaked their ratings and price targets for several Brazilian banks, writing there are elements to be "less negative" on the sector.

Noting that slower loan growth, margin deterioration and higher delinquency have taken a toll on earnings this year for the largest banks, the analysts see improving conditions during 2013 - although not enough yet to move them to a bullish stance.

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: VALE

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