Latin American Stocks Sinking Following Weak China PMI Data; Coca-Cola FEMSA Resists Selloff After Record Setting Bond Issue


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Latin American markets are falling today following weak manufacturing data coming out of China overnight while worries the U.S. Federal Reserve could soon pull the plug on its stimulus programs triggered a global selloff for equities, dragging markets throughout South and Central America under as well.

Here's where the regional markets stand today:

- Ibovespa down 683.02 (-1.21%) to 55,746.25

- IPC (Mexico City) down 19.08 (-0.05%) to 40,099.94

- Santiago Index IPSA down 31.28 (-0.73%) to 4,238.84

- Merval Buenos Aires down 28.49 (-0.80%) to 3,519.25

The flash HSBC Purchasing Managers' Index for May fell to 49.6, slipping under the 50-point mark separating growth and contraction for the first time since last October. The final HSBC PMI stood at 50.4 in April.

Commodity-related stocks are taking some of the hardest hits today as trader fret over future exports to the Asian giant. Vale SA (VALE3.SA, VALE), the world's second largest miner and the world leader for iron ore production, is down 2.7% on the Ibovespa index tracking Brazilian stocks while shares of Grupo Mexico (GMEXICOB.MX) - Mexico's largest domestic miner - is down 2.2% in IPC trade.

Energy and financial stocks also are falling in the broad-based selloff. Selected gold miners, however, are finding modest support as traders seek out refuges, with U.S.-listed shares of Peruvian bullion producer Companaa de Minas Buenaventura SAA ( BVN ) climbing 2.7% today.

In other individual company news, American depository shares of Mexican bottler Coca-Cola FEMSA ( KOF ) are up 0.5% to $151.74 apiece after the company last night priced an offering of 10-year bonds in the Mexican market ( KOF ), generating 7.5 bln pesos ($600 mln).

With an annual yield of 5.46%, the coupon for the bonds is the lowest ever achieved by a corporate issuer in the Mexican market. The bonds received credit ratings of from Moody's and AAAmex from Fitch. KOF expects to use proceeds from the offering for general corporate purposes, including capital expenditure and working capital.

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
More Headlines for: BVN , KOF

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