EMERGING MARKETS-Latam stocks fall on ECB's Draghi comments

Thu Feb 7, 2013 5:39pm EST

Related Topics

* Mario Draghi comments renew fears in euro zone
    * Brazil Bovespa falls 0.98 pct, Mexico IPC down 1.21 pct

    By Danielle Assalve and Jean Arce
    SAO PAULO/MEXICO CITY Feb 7 (Reuters) - Latin American
stocks fell on Thursday, tracking losses on Wall Street, after
European Central Bank President Mario Draghi said there were
more negative economic risks than positive ones facing the
troubled euro zone.
    The specter of Europe's economic concerns returned, jolting
global markets after Draghi said the exchange rate was important
to growth and price stability, which investors took as a sign
the bank is concerned about the euro's advance in recent days.
 
    Latin American stocks followed U.S. markets lower, with the
S&P 500 down 0.18 percent, and the Dow Jones  off
0.30 percent.
    Mexico's IPC index, which has added 11 percent since
mid-November, saw its biggest one-day drop in 13 weeks to end a
recent rally, while Brazil's Bovespa 
lost 0.98 percent. Chile's bourse dipped 0.13 percent.
    "The (IPC) rally we've seen since December seems to me to be
over," said Jorge Lagunas, a trader at Interacciones brokerage
in Mexico City. "We're seeing more of the same from the ECB -
zero positive news." 
    Shares in debt-ridden Mexican cement giant Cemex 
 fell 4.13 percent after the company posted
weaker-than-expected results, blaming weak sales in Europe.
 
    Nonetheless, shares in the Carlos Slim controlled phone
giant America Movil barely budged after Mexico's
competition watchdog decided to fine Telmex, which is part of
America Movil, $52 million for monopolistic practices.
 
    In Brazil, inflation accelerated to the fastest rate in
nearly eight years in January, raising bets of an interest rate
hike this year that could complicate the government's drive to
reignite a near-stagnant economy. 
    Preferred shares in iron ore giant Vale fell 2.7
percent, while state-oil company Petrobras shares
were down 0.57 percent. Petrobras shares had fallen 2.65 percent
in the previous session.
    But Brazilian billionaire Eike Batista's oil sector
competitor OGX rose 1.89 percent, driving gains in
the index. 
    
    Latin America's key stock indexes at 2156 GMT:
    
 Stock indexes                              daily %    YTD %
                                             change   change
                              Latest                 
 MSCI LatAm                    3,896.58       -0.38      2.6
                                                     
 Brazil Bovespa               58,372.46       -0.98    -4.23
                                                     
 Mexico IPC                   45,019.21       -1.21     3.01
                                                     
 Chile IPSA                    4,590.64       -0.13     6.72
                                                     
 Chile IGPA                   22,324.11       -0.12     5.95
                                                     
 Argentina MerVal              3,302.97        0.39    15.72
                                                     
 Colombia IGBC                15,042.55       -0.85     2.22
                                                     
 Peru IGRA                    21,707.35       -0.21     5.23
                                                     
 Venezuela IBC                565,727.0        0.06    20.00
                                      0
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A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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