EMERGING MARKETS-Brazil stocks fall to 6-wk low, Mexico hits high
* Weak earnings at Banco Bradesco weigh in Brazil * Mexican retailers group outlook lifts Walmex, Chedraui * Bovespa falls 1.87 pct, Mexico IPC up 0.74 pct By Danielle Assalve SAO PAULO, Jan 28 (Reuters) - Brazilian stocks fell to a six-week low on Monday after weak earnings from Banco Bradesco fed concerns about sluggish economic growth, while Mexican stocks hit a record high on a cheery outlook for retailers. Brazil's benchmark Bovespa stock index shed 1.87 percent to 60,027.07, its lowest since Dec. 18. It was the biggest one-day percentage drop since mid-November. The Bovespa has slumped 5 percent from a high early this year amid worries that Latin America's top economy is struggling even after the central bank slashed interest rates last year to a record low, while inflation is now drifting higher. "There are many local uncertainties and the outlook is not very good due to the weaker dynamics of the Brazilian economy," said Newton Rosa, chief economist at SulAmerica Investimentos. The shares of Banco Bradesco SA fell 3.07 percent after quarterly profit at Brazil's No. 2 private sector bank fell short of analysts' estimates. The news weighed on shares of rival financial institutions, with state-controlled Banco do Brasil SA down 2.72 percent and Itaú Unibanco Holding SA, Brazil's largest non-government bank, falling 2.63 percent. The Bovespa index slumped more than 3 percent in the last two sessions after it failed several attempts to break resistance near 62,000 points in the last three weeks. Mexico's IPC index rose 0.74 percent to an all-time high of 45,912.51 points. Top retailer Wal-Mart de Mexico jumped 2.32 percent after retail trade group ANTAD said sales at its members' stores open more than a year would rise 5 percent in 2013, just up from a 4.7 percent rate in 2012. Rival retailer Grupo Comercial Chedraui, gained 0.88 percent. Mexican stocks have been notching record levels since last year, helped by solid U.S. demand for local exports and hopes a new government will be able to push key energy and tax reforms through a divided Congress. The IPC is up 5 percent this year after a nearly 18 percent gain in 2012. Chile's IPSA index rose 0.31 percent to 4518.84, also lifted by a 2.23 percent gain in retailer with Cencosud . Latin America's key stock indexes at 2200 GMT: Stock indexes daily % YTD % Latest change change MSCI LatAm 3,920.62 -0.41 3.23 Brazil Bovespa 60,027.07 -1.87 -1.52 Mexico IPC 45,912.51 0.74 5.05 Chile IPSA 4,518.84 0.31 5.06 Chile IGPA 22,031.83 0.3 4.56 Argentina MerVal 3,342.10 0.06 17.09 Colombia IGBC 14,977.48 -0.10 1.78 Peru IGRA 20,926.11 -1.68 1.44 Venezuela IBC 492,031.78 0.3 4.37
- Exclusive: Secret contract tied NSA and security industry pioneer |
- U.S. aircraft hit by gunfire in South Sudan as conflict worsens
- With Fed out of the way, what's next on Wall Street?
- Four men arrested in deadly N.J. shopping mall carjacking
- Analysis: Lost Brazil order raises threat to Boeing fighter jets