SAN FRANCISCO (MarketWatch) — Latin American markets strengthened Monday as U.S. stocks got a boost from better-than-expected July consumer spending figures and an optimistic outlook on the U.S. economy from Federal Reserve Chairman Ben Bernanke last week.
In Brazil, home of the biggest stock exchange in Latin America, the Bovespa BR:BVSP +2.75% gained 2.2% to 54,507.86. It had climbed 0.8% on Friday.
The strength came on the heels of a rally on Wall Street. The Dow Jones Industrial Average DJIA +1.56% jumped 160 points, or 1.4%, and the S&P 500 Index SPX +1.92% rose 1.7%. Read more about Monday’s U.S. stock action.
Bernanke said on Friday that he didn’t find any need for a third round of quantitative easing but left options open. Also, the U.S. Commerce Department Monday posted a better-than-expected 0.8% rise in July consumer spending. The news inspired investors to buy riskier assets.
Meanwhile, Latin American traders also looked toward the Brazilian central bank’s decision Wednesday on monetary policy.
“While the BCB is expected to interrupt the tightening cycle keeping the Selic rate stable at 12.5%, markets will closely monitor the [post-meeting] statement,” said strategists at RBS, in a note.
“In our view, the BCB will justify the pause and as far as the signalling for the next meeting is concerned, it might favour some flexibility hinting that a change in the monetary policy stance will be data dependent as opposed to signalling a rate cut already in October, similar to other central banks in the region,” he said.
Shares in OGX Petroleo e Gas Participacoes BR:OGXP3 +2.49% climbed 1.7% in recent dealings, as prices for crude futures in New York climbed above $87 a barrel. Oil giant Petrobras BR:PETR4 +3.22% tacked on 2.5%.
In Mexico, the IPC equity index MX:IPC +0.90% rose 1% to 34,379.56, while Argentina’s Merval AR:MERV +1.79% rose 2% to 2,941.74 and Chile’s IPSA CL:IPSA +1.80% tacked on 1.9% at 4,197.54.
Source: www.marketwatch.com
In Brazil, home of the biggest stock exchange in Latin America, the Bovespa BR:BVSP +2.75% gained 2.2% to 54,507.86. It had climbed 0.8% on Friday.
The strength came on the heels of a rally on Wall Street. The Dow Jones Industrial Average DJIA +1.56% jumped 160 points, or 1.4%, and the S&P 500 Index SPX +1.92% rose 1.7%. Read more about Monday’s U.S. stock action.
Bernanke said on Friday that he didn’t find any need for a third round of quantitative easing but left options open. Also, the U.S. Commerce Department Monday posted a better-than-expected 0.8% rise in July consumer spending. The news inspired investors to buy riskier assets.
Meanwhile, Latin American traders also looked toward the Brazilian central bank’s decision Wednesday on monetary policy.
“While the BCB is expected to interrupt the tightening cycle keeping the Selic rate stable at 12.5%, markets will closely monitor the [post-meeting] statement,” said strategists at RBS, in a note.
“In our view, the BCB will justify the pause and as far as the signalling for the next meeting is concerned, it might favour some flexibility hinting that a change in the monetary policy stance will be data dependent as opposed to signalling a rate cut already in October, similar to other central banks in the region,” he said.
Shares in OGX Petroleo e Gas Participacoes BR:OGXP3 +2.49% climbed 1.7% in recent dealings, as prices for crude futures in New York climbed above $87 a barrel. Oil giant Petrobras BR:PETR4 +3.22% tacked on 2.5%.
In Mexico, the IPC equity index MX:IPC +0.90% rose 1% to 34,379.56, while Argentina’s Merval AR:MERV +1.79% rose 2% to 2,941.74 and Chile’s IPSA CL:IPSA +1.80% tacked on 1.9% at 4,197.54.
Source: www.marketwatch.com
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