Latin American Stocks Surge; Led by Energy Firms, Miners in Commodity Rally

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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 conditions improve.

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 unchanged.

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 points.

- IPC (Mexico City) now up 28 points (0.07%) to 40,683. Was up 168.23.

- 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 up 41.17.

In ADR news, Grupo Televisa ( TV ) 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.

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) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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