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Latin American Markets Mixed; But Brazilian, Mexican Indices Posting Strong Gains After Bullish U.S. Data

By: MT Newswires
Posted: 5/17/2013 12:52:00 PM
Referenced Stocks: CVX;PBR;YPF

Latin American stocks are mixed, but with both Brazil and Mexico enjoying strong gains and Argentina and Chile slightly lower. For the most part, resources related stocks are picking up strength after new data in the United States showed a brisk rise in consumer positivity as well as a larger-than-expected jump for leading indicators - raising the prospect of increased demand for Latin America commodities.

Here's where the regional markets stand today:

- Ibovespa was up 272.25 a short while ago. Now up 256.1 (+0.5%) to 55,028.7.

- IPC (Mexico City) was up 178.23. Now up 198.55 (+0.5%) to 41,959.7.

- Santiago Index IPSA down 7 (-0.2%) to 4,254.2.

- Merval Buenos Aires down 7.1 (-0.10%) to 3,699.6.

State-majority owned Petroleo Brasiliero SA ( PBR ), also known as Petrobras, is up about 1% after yesterday completing an US$11bn multi-tranche bond sale, the largest emerging markets bond deal ever.

Separately, Chevron ( CVX ) is teaming with Argentine energy producer YPF SA ( YPF ) to develop the Vaca Muerta shale basin, believed to be the second largest unconventional oil reservoir in the world. Under terms of the deal signed yesterday, the American energy major has pledged to invest $1.5 bln during the initial phase of the project.

U.S.-listed shares of YPF are up about 2.2% today while CVX is down 0.3% but still at the high end of its year range.