Resource Stocks Dragging Latin American Market Lower After U.S. Retail Data Declines
Latin American markets are broadly lower late Friday, buffeted by falling commodity prices after an unexpected dip in U.S. retail spending last month re-ignited fears American pocketbooks are drying up.
The Mexican IPC Index is down over 1%, snapping a four-day winning streak, after data showed a 0.4% slide in March retail sales in the United States, its second decline in three months. The U.S. is the largest market for Mexican goods.
Here's where the regional markets stand today:
- Ibovespa was down 864.99 a short while ago. It is now down 916.85 (-1.65%) to 54,484.
- IPC (Mexico City) down 516.1 (-1.16%) to 43,892.3.
- Santiago Index IPSA down 16.6 (-0.38%) to 4,324.2
- Merval Buenos Aires down 41.98 (-1.1%) to 3,450.2.
In individual company news, ADS of Ecopetrol SA ( EC ) are down 1.5% and have hit new year lows after Zack's added the Columbian energy company to its "Sell Now" list, explaining EC's Q4 profit of $1.01 per share in mid-February trailed analyst forecasts by $0.26 per share.
Earnings were down 15.8% year-over-year basis with Zacks also noting that analysts have trimmed their FY13 profit forecasts for EC by 36 cents to $4.72 per share over the past 30 days.