Latin American stocks are mostly lower this morning on declines
for crude oil, gold and other commodities following disappointing
trade data out of Germany today and uncertain prospects on how the
Spanish banking crisis may be resolved.
Here's where the regional market guages stand this morning:
- Ibovespa down 148.46 -0.27% 54,007.5781
- IPC (Mexico City) down 43.21 -0.12% 37,204.13
- Santiago Index IPSA up 1.98 +0.05% 4,286.46
- Merval Buenos Aires down 23.18 -1.04% 2,204.40
Mexico's central bank, as expected, today held the country's
benchmark interest rate steady at 4.5%. Most analysts thought the
Banco de Mexico would keep its base rate at the same level it has
had since 2009 although there had been some speculation the central
bank would cut rates given Mexico's slowing pace for inflation.
Minutes released this morning of Brazil's central bank's last
meeting in late May had policy-makers saying its economy is
recovering at a "very gradual pace," likely indicating the monetary
policy committee of the Banco Central do Brasil will again cut its
benchmark rate by 0.5% to an 8.0% rate when it meets again next
month, Bloomberg reports.
In company news, U.S.-lised shares of Gafisa SA (
) are flat again at $2.26 each, paring an earlier 2% decline that
followed the Brazilian real estate developer announcing plans to
sell stock and raise funding to buy the remaining stake in
Alphaville Urbanismo that already doesn't own.
GFA will sell 70.2 million shares to finance the acquisition of
the final 20% ownership interest in Alphaville Urbanismo, a luxury
housing community subsidiary that's been the company's most
At the stock's current price, the offering would produce about
$155 million in gross proceeds before underwriting and other
offering expenses. GFA estimates the 20% stake is worth about
BRL359 million, or about $176.2 million.