European Recession, U.S. Fiscal Cliff Worries Sends Latin American Markets Lower
Latin American markets are broadly lower today following new data indicating that the 17-nation euro-zone may be headed back into recession. The European Union statistic agency reported Q3 GDP shrank 0.1% compared to Q2. On an annualized basis, that equates to 0.4% decline this year and follows a 0.2% contraction in Q2. Disappointing U.S. jobs data and ongoing worries U.S. political leaders will not be able to resolve the so-called 'fiscal cliff' issue is also weighing on stocks.
Here's where the regional markets stand today:
- Ibovespa down 1,206.71 (-2.10%) to 56,279.36.
- IPC (Mexico City) down 136.76 (-0.3%) to 40,613.
- Santiago Index IPSA down 17.86 (-0.40%) to 4,169.87.
- Merval Buenos Aires down 7.10 (-0.31%) to 2,313.59
In company news, Solazyme Inc. ( SZYM ) shares are up more than 13% at just over $8 each, but well off a day high $8.70 this afternoon after announcing plans to expand production at its renewable oil joint venture in Brazil with Bunge Ltd ( BG ), which is down nearly 1%.
Plans call on the companies to expand production from current levels around 100,000 metric tons per year to over 300,000 metric tons by 2016. The firms also expect to broaden the portfolio of oils produced and work on joint market development for tailored food oils in Brazil.