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
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 (
) 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
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.