LOS ANGELES (MarketWatch) — Brazilian and Mexican stocks fell Monday, turning lower following a downbeat assessment about the euro-area’s economy and the outlook on taming the debt crisis from the head of the region’s central bank.
Pressure in Sao Paulo also stemmed from a dimmer outlook for yearly inflation.
Brazil’s Bovespa BR:BVSP
-1.42% fell 1.4%, wiping out earlier advance of 0.5% to face it fourth loss in a row.Mexico’s IPC MX:IPC
-1.29% lost 1.2% to 35,626, falling back from anearlier gain of as much as 1%.A weekly survey of analysts conducted by Brazil’s central bank showed that they, on average, expect the IPCA inflation index to end 2011 at 6.52%, up from 6.5% a week ago.
That result would leave the index above the 6.5% upper-limit of central bank’s inflation target. In Sao Paulo, shares of home builder were hit hard, leaving Gafisa GFA
-13.55%
down 13% and PDG Realty BR:PDGR3
-3.12% down 3.1%.
The regional markets had been higher as investors awaited results of a conference call between European Union finance ministers discussing how much money their countries plan to lend to the International Monetary Fund. The decision to lend had been decided at a summit of about two weeks ago.
But sentiment was hurt after European Central Bank President Mario Draghi, speaking at an economics committee, said that the economic outlook for the euro zone was highly uncertain. He also signaled low likelihood for the expansion of a bond purchase program from the ECB.
European stocks gave up the bulk of their gains after Draghi’s comments, and U.S. stocks also came under pressure. Read about Monday's action in European Stocks.
On Wall Street, the S&P 500 Index SPX
-1.17% fell 1.2% to 1,205 and the Dow Jones
Industrial Average DJIA
-0.84% fell 98 points. See more about the decline in U.S. stocks
on Monday.
In Mexico City, the drag came in part from shares of America Movil AMX
-0.63% , the most
heavily weighted on the index, as they gave up 1.9%. Cement maker Cemex CX
+5.26%
and banking firm Banorte MX:GFNORTEO
-3.30% were the worst performers, each down
2.9%.
Mining stocks were mixed, with copper miner Grupo Mexico MX:GMEXICOB
-1.11% off 1%
and Minera Frisco up 1.5%. Retail stocks, however, moved higher, with Wal-Mart de Mexico WMMVY
+0.08% up 1.4%.
marketwatch.com
Pressure in Sao Paulo also stemmed from a dimmer outlook for yearly inflation.
Brazil’s Bovespa BR:BVSP
-1.42% fell 1.4%, wiping out earlier advance of 0.5% to face it fourth loss in a row.Mexico’s IPC MX:IPC
-1.29% lost 1.2% to 35,626, falling back from anearlier gain of as much as 1%.A weekly survey of analysts conducted by Brazil’s central bank showed that they, on average, expect the IPCA inflation index to end 2011 at 6.52%, up from 6.5% a week ago.
That result would leave the index above the 6.5% upper-limit of central bank’s inflation target. In Sao Paulo, shares of home builder were hit hard, leaving Gafisa GFA
-13.55%
down 13% and PDG Realty BR:PDGR3
-3.12% down 3.1%.
The regional markets had been higher as investors awaited results of a conference call between European Union finance ministers discussing how much money their countries plan to lend to the International Monetary Fund. The decision to lend had been decided at a summit of about two weeks ago.
But sentiment was hurt after European Central Bank President Mario Draghi, speaking at an economics committee, said that the economic outlook for the euro zone was highly uncertain. He also signaled low likelihood for the expansion of a bond purchase program from the ECB.
European stocks gave up the bulk of their gains after Draghi’s comments, and U.S. stocks also came under pressure. Read about Monday's action in European Stocks.
On Wall Street, the S&P 500 Index SPX
-1.17% fell 1.2% to 1,205 and the Dow Jones
Industrial Average DJIA
-0.84% fell 98 points. See more about the decline in U.S. stocks
on Monday.
In Mexico City, the drag came in part from shares of America Movil AMX
-0.63% , the most
heavily weighted on the index, as they gave up 1.9%. Cement maker Cemex CX
+5.26%
and banking firm Banorte MX:GFNORTEO
-3.30% were the worst performers, each down
2.9%.
Mining stocks were mixed, with copper miner Grupo Mexico MX:GMEXICOB
-1.11% off 1%
and Minera Frisco up 1.5%. Retail stocks, however, moved higher, with Wal-Mart de Mexico WMMVY
+0.08% up 1.4%.
marketwatch.com
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