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
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 (
) climbing 2.7% today.
In other individual company news, American depository shares of
Mexican bottler Coca-Cola FEMSA (
) are up 0.5% to $151.74 apiece after the company last night priced
an offering of 10-year bonds in the Mexican market (
), 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 Aaa.mx from Moody's and AAAmex
from Fitch. KOF expects to use proceeds from the offering for
general corporate purposes, including capital expenditure and