SAO PAULO, July 28 (Reuters) - Latin American stocks rose
on Thursday on stronger--than-expected U.S. economic data,
helping pare steep losses in the previous session sparked by
concern over the U.S. debt ceiling deadlock.
The regional MSCI Latin America stock index .MILA00000PUS
added 0.94 percent after notching a 2.6 percent fall on
Wednesday, its worst one-day tumble in more than three months.
"Things abroad got a little better," said Jose Francisco de
Lima Goncalves, chief economist with Banco Fator in Sao Paulo.
Key U.S. stock indexes rose as sales of existing U.S. homes
unexpectedly rose in June from May and new U.S. jobless claims
dropped below the 400,000 level for the first time since early
April.
But as acrimonious debates over raising the U.S. debt
ceiling before an Aug. 2 deadline appear stalled, he added,
stocks could give up early gains.
"The gains are fragile. I don't think this will last," Lima
Goncalves said. "It might not be today, but between now and
tomorrow morning, I think the environment will tend to sour."
Brazil's benchmark Bovespa .BVSP advanced 1.2 percent
after closing at its lowest since May 2010 in the previous
session.
Brazilian stocks also got a boost from central bank meeting
minutes -- released early on Thursday -- that markets saw as
dovish, said Raphael Martello, an economist with Tendencias
consultancy in Sao Paulo.
Not only would a pause in a hiking cycle suggest more
liquidity to flow into equities, he said, "the economic growth
cycle won't get the brakes put on."
Card payment processors led gains in Brazil. Shares of
Redecard (RDCD3.SA) jumped 4.8 percent as Cielo (CIEL3.SA)
moved up 2.7 percent. Net income at Redecard dropped in the
second quarter but still beat analysts' forecasts.
Mexico's IPC index .MXX advanced 1.1 percent, boosted by
the U.S. data. Mexico sends the lion's share of its exports to
the United States.
The IPC also continued to benefit from rule changes on
Wednesday allowing local pension funds to increase their equity
holdings.
Shares of heavyweight America Movil (AMXL.MX), one of the
world's biggest telecommunications companies, rose 1.06 percent
as Walmex (WALMEXV.MX), the country's leading retailer, put on
3.29 percent.
Chile's IPSA index .IPSA gained 0.62 percent after
closing at its lowest since March in the previous session.
Retailer Falabella (FAL.SN) led gains, rising 0.98
percent.
Source: www.reuters.com
on Thursday on stronger--than-expected U.S. economic data,
helping pare steep losses in the previous session sparked by
concern over the U.S. debt ceiling deadlock.
The regional MSCI Latin America stock index .MILA00000PUS
added 0.94 percent after notching a 2.6 percent fall on
Wednesday, its worst one-day tumble in more than three months.
"Things abroad got a little better," said Jose Francisco de
Lima Goncalves, chief economist with Banco Fator in Sao Paulo.
Key U.S. stock indexes rose as sales of existing U.S. homes
unexpectedly rose in June from May and new U.S. jobless claims
dropped below the 400,000 level for the first time since early
April.
But as acrimonious debates over raising the U.S. debt
ceiling before an Aug. 2 deadline appear stalled, he added,
stocks could give up early gains.
"The gains are fragile. I don't think this will last," Lima
Goncalves said. "It might not be today, but between now and
tomorrow morning, I think the environment will tend to sour."
Brazil's benchmark Bovespa .BVSP advanced 1.2 percent
after closing at its lowest since May 2010 in the previous
session.
Brazilian stocks also got a boost from central bank meeting
minutes -- released early on Thursday -- that markets saw as
dovish, said Raphael Martello, an economist with Tendencias
consultancy in Sao Paulo.
Not only would a pause in a hiking cycle suggest more
liquidity to flow into equities, he said, "the economic growth
cycle won't get the brakes put on."
Card payment processors led gains in Brazil. Shares of
Redecard (RDCD3.SA) jumped 4.8 percent as Cielo (CIEL3.SA)
moved up 2.7 percent. Net income at Redecard dropped in the
second quarter but still beat analysts' forecasts.
Mexico's IPC index .MXX advanced 1.1 percent, boosted by
the U.S. data. Mexico sends the lion's share of its exports to
the United States.
The IPC also continued to benefit from rule changes on
Wednesday allowing local pension funds to increase their equity
holdings.
Shares of heavyweight America Movil (AMXL.MX), one of the
world's biggest telecommunications companies, rose 1.06 percent
as Walmex (WALMEXV.MX), the country's leading retailer, put on
3.29 percent.
Chile's IPSA index .IPSA gained 0.62 percent after
closing at its lowest since March in the previous session.
Retailer Falabella (FAL.SN) led gains, rising 0.98
percent.
Source: www.reuters.com
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