EMERGING MARKETS-Latam stocks rise on easing euro zone fears
* Latam stocks rise as euro zone debt crisis worries ease
* Mexico's IPC up 2.15 pct, Chile's IPSA 2.49 pct
* Brazil markets closed for national holiday
(Updates for close, new quotes)
By Rachel Uranga
MEXICO CITY, Sept 7 (Reuters) - Mexican stocks climbed on Wednesday as fears eased of a widening European debt crisis, but analysts said further sharp gains were needed in the coming sessions to overcome a downtrend.
Germany's highest court rejected lawsuits on Wednesday aimed at blocking participation in euro zone bailouts, supporting gains in riskier assets such as stocks and emerging market currencies. [ID:nL5E7K70Q9]
The MSCI Latin American stock index .MILA00000PUS gained 0.87 percent. Brazil's Bovespa was closed on Wednesday for a national holiday.
Despite a two day winning-streak for Mexican stocks, analysts said markets remained volatile as investors worried the United States, its largest trading partner, could slip into a recession without more economic stimulus.
Mexico's IPC stock index .MXX jumped 2.15 percent to 35,179.59 points. Despite the big gain, analysts said stocks would need to advance about 3 percent beyond 36,000 points in the coming sessions to build up confidence in further gains.
"The index had a very important comeback," said Carlos Gomez, an analyst at Mexico City-based brokerage Invex. "Technical indicators still have a negative bias and we have to see if the IPC really has the force to break out of its downtrend."
In Mexican trading, telecommunications giant America Movil (AMXL.MX) added 1.45 percent and copper miner and railroad company Grupo Mexico (GMEXICOB.MX) rose 3.2 percent.
Investors were eyeing a Thursday speech by President Barack Obama, who is expected to set out plans to improve the U.S. economy and job creation.
"There are expectations that the governments of Europe and the United States will impose measures to support the economy," said Jaime Ascencio, an analyst at Actinver, a Mexico City-based brokerage.
Market players remain wary of slowing global growth. Political disagreements and reticent lawmakers could prevent policymakers in Europe and the United States from coming up with solutions to boost their economies.
The ruling in Germany will still require Europe's largest economy to get approval of its parliament's budget committee before it can grant Greece and other debt-ridden countries aid. For details, see [ID:nL5E7K70Q9]
Argentina's MerVal .MERV stock index rose 2.1 percent while Chile's blue-chip IPSA index .IPSA added 2.49 percent with shares in industrial conglomerate Copec COP.SN up 4.0 percent and retailer Cencosud CEN.SN ended 4.59 percent stronger.
(Reporting by Rachel Uranga; Editing by Diane Craft)
- British Muslim calls for action on jihadi subculture after beheading video |
- Obama condemns killing of reporter, U.S. hits militants in Iraq |
- Israeli air strike kills three Hamas commanders in Gaza |
- Stocks extend rally, S&P hits new high as data signals growth
- Thai junta leader appointed PM by hand-picked parliament |