Latin American markets are mostly lower this afternoon as
temporary enthusiasm over new efforts by European officials to prop
up debt-heavy Spanish banks fades out. Lower commodity prices - on
the likelihood that demand for commodities isn't going to rise
significantly any time soon - are pressuring shares today.
Here's where the major regional market gauges stood:
- Ibovespa was down 832.62 (-1.50%) at 54,561.43
- IPC (Mexico City) up 83.89 (+0.21%) at 40,047.15
- Santiago Index IPSA down 20.33 (-0.46%) at 4,356.29
- Merval Buenos Aires down 41.19 (-1.73%) at 2,342.50
In company news, shares of Itau Unibanco Holding SA (
) were down more than 1% this afternoon with the Brazilian
money-center bank forming a new joint venture with Banco BMG S.A.
to offer payroll debit loans throughout the country.
ITUB will hold a controlling 70% stake of the new partnership,
with the partners providing proportional amounts of initial capital
totaling $491 million (BRL 1 million). ITUB also will provide up to
$147.5 million each month for BMG's payroll debit loan operations.
ITUB said it does not expect the new business to have a significant
impact on its financial results during the current fiscal year.