The Latin American markets are broadly higher, albeit in some
cases off day highs, carried along on a global rally that followed
the U.S. Federal Reserve yesterday beginning a new round of
quantative easing. Natural resource-related stocks, in particular,
are higher on dollar weakness increasing commodity prices as well
as expectations for increased demand for raw goods as economic
In economic news, central bankers in Chile late Thursday held
the country's key interest rate at 5%, the eight straight time
policy makers at Banco Central de Chile have left rates
In a statement, the central bank said there is still
"uncertainty" over the performance of European economies, "and a
resurgence of tensions in coming months cannot be ruled out."
Year-over-year consumer and core inflation levels remain under 3%,
the body observed, adding, "Inflation expectations over the policy
horizon remain around the target."
Also, Latin American steel production was down 1% from year-ago
levels to 5.8 million metric tons during August, the Latin American
Steel Association, or Alacero, said last night.
Brazilian output was up 4% from August 2011 at 3.1 million tons
last month with Mexico producing 1.6 million tons. Argentina saw a
26% year-over-year decline, the trade group reported without
specifying a production amount.
Here's where the regional markets stand this afternoon:
- Ibovespa now up 250 points (+0.4%) to 62,204. Was Up 550
- IPC (Mexico City) now up 28 points (0.07%) to 40,683. Was up
- Santiago Index IPSA up 33.23 (+0.8%) at 4,218.00.
- Merval Buenos Aires now up 39 points (1.55%) at 2,547.57. Was
In ADR news, Grupo Televisa (
) is off more than 1% today following a downgrade to Sector Perform
from Outperform at Scotia Capita. The move follows ADRs of the
Mexican broadcaster yesterday establishing a new 52-week intra-day
high of $24.71 per ADR, easing slightly at the close.