Back to Main

Latin American Markets Slide On Trader Worries Over U.S. Debt Limit

By: MT Newswires
Posted: 1/15/2013 1:12:00 PM
Referenced Stocks: GE;GFA;PBR

Latin American markets are lower today, matching declines elsewhere globally on trader worries over the standoff between the White House and U.S. Congressional Republicans over raising that nation's $16.4-trillion debt limit.

Here's where the regional markets stand today:

- Ibovespa was down 68.5 points. Now down 104 (-0.2%) to 61,976.8.

- IPC (Mexico City) was down 37 points. Now 60 points lower (-0.1%) to 44,803.

- Santiago Index IPSA down 10.6 (-0.3%) to 3,833.8.

- Merval Buenos Aires was down 22.45. Now down 14.7 (-0.5%) to 3,080.7.

In company news, Petroleo Brasileiro SA ( PBR ) - also known as Petrobras - is up about 1% after a local newspaper reported the Brazilian government may authorize a hike in fuel prices next week, aiding the bottom line of the state-owned energy company.

PBR today also retained GE Oil & Gas ( GE ) to supply turbomachinery equipment and services on four of its new floating production, storage and offloading units off the Brazil coast. The contract is worth over $500 million, GE said.

Also, U.S.-listed shares of Gafisa SA ( GFA ) are up more than 2% at just over $5, earlier advancing about 5% to $5.16 after the homebuilder reported a strong rebound in Q4 sales and housing starts, according to a regulatory filing last night. Unit deliveries rose 43% over year-ago levels to 9,378 units during the quarter, near the top of its guidance and lifting the company to a 20% increase in deliveries for the year. Total sales last year reached $1.29 billion.