Latin American Stocks Mixed; Brazilian Market Rebounds After Central Bank Rate Hike
The Latin American markets are mixed in late trading today, with Brazil's Ibovespa index enjoying a modest rebound today following yesterday' drubbing for global equities while the Merval Buenos Aires Index tracking Argentine stocks is down for the fourth time in five sessions.
Mexican stocks also are mostly lower, although maybe paring losses.
As expected, Brazil's central bank late yesterday raised its benchmark Selic lending rate by 25 basis points to 7.5%, beginning what most believe with will be a new rate hike cycle as the country looks to keep a lid on inflation.
"The committee judged that the high level of inflation and the dispersion of price increases, among other factors, contributed to resilience in inflation and required a monetary policy response," the central bank said in a note.
"On the other hand, the committee considers that internal and, principally, external uncertainties surround the prospective scenario for inflation and recommends that monetary policy be administered with caution."
Here's where the regional markets stand today:
- Ibovespa was up 259.61. Now up 298.6 (+0.6%) to 53,180.6.
- IPC (Mexico City) was down 338.75. Now down 316.2 (-0.7%) to 42,327.5.
- Santiago Index IPSA up 23.9 (+0.66%) to 4,266.01.
- Merval Buenos Aires down 23.4 (-0.77%) to 3,398.75.
In individual company news, ADS of Compania de Minas Buenaventura SA ( BVN ) are up 3.6% at near $21 apiece - taking it further away from near a year low $20.19 - with the Peruvian gold and silver miner saying that contractors working at its Uchucchacua mine began a strike yesterday in a bid to increase their pay.
According to the company, the Peruvian Ministry of Labor has denied the proceeding of the strike at this time. It also said that annual negotiations between the company and the contractors' union closed in January.