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Latin American Stocks Sliding After U.S. Jobs, Service Sector Data Unlocks Fresh Worries; But Brazil Showing Up Strong
By: MT Newswires
Latin American markets are mostly lower, including a 3.5% decline for the Merval index tracking Argentine stocks in their first trading since last Thursday. But sentiment is brighter in Brazil with the Ibovespa getting even strong as the trading day there comes to an end.
Trader sentiment in other areas appears to be most affected by a smaller-than-expected rise in U.S. hiring in a private survey conducted by a payroll processing company. The ADP National Employment Report said private employers added 158,000 jobs last month, well short of economists' expectations for 200,000 new workers.
A separate report today also showed employment growth pulling back in the U.S. service sector during March, leading some to scale back their predictions for the U.S. Labor Deparment's non-farm payrolls report on Friday.
A 2% rise for shares of Brazilian miner Vale SA ( VALE ) is helping keep the Sao Paulo Ibovespa index in the black, with bargain-hunting a likely factor to VALE's advance following three days of declines that erased nearly 5% of its value since its March 27 close.
America Movil ( AMX ), the telecommunications giant owned by Carlos Slim, is down almost 2.5% today, weighing on the IPC index tracking Mexican stocks, as the Mexican governments continues its efforts to open up the nation's telecom market to more competition.
AMX ADRs are down 2.5% today and over 21% since early February, benefitting slightly from a recent spate of bargain-shopping that lifted the stock from a low under $18.50 a share two weeks ago to its current range around $20.20.
Here's where the regional markets stand this afternoon:
- Ibovespa was up 262.28 a short while ago. Now up 317.4 (+0.58%) to 55,206.50.
- IPC (Mexico City) down 356.8 (-0.81%) to 43,756.72
- Santiago Index IPSA was down 47.09. Now down 52.45 (-1.2%) to 4,343.75.
- Merval Buenos Aires down 107.9 (-3.2%) to 3,272.9.