EMERGING MARKETS-Latam markets tumble after Fed's comments

Wed Jun 19, 2013 5:43pm EDT

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SAO PAULO, June 19 (Reuters) - Brazil's Bovespa stock index
plummeted on Wednesday, with Mexico's IPC index also seeing a
sizeable fall, after the U.S. Federal Reserve laid out a
blueprint for how it could wind down its bond purchase program.
    In a closely watched address, Federal Reserve Chairman Ben
Bernanke said the Fed's policy-setting committee sees a likely
reduction in the pace of purchases in 2013 if the economic
forecast comes in as expected. Purchases could end by the middle
of next year. 
    The region's emerging markets have provided a home for
investors looking for riskier, high-yielding places to house
their capital and any end to the Fed's massive $85 billion a
month asset-buying scheme would likely roil local markets.
    * Brazil's benchmark Bovespa index dropped 3.18
percent to its lowest level since August 2011 as shares of
BM&FBovespa, the country's sole bourse, slid 6.95
percent following news that NYSE Euronext and Americas
Trading Group are seeking Brazilian regulatory approval to open
a new stock exchange. 
    * Oil producer OGX continued its precipitous
decline, falling 15.22 percent. A painful sell-off of OGX shares
has shaved more than 80 percent off the company, controlled by
Brazilian billionaire Eike Batista.
    * Top commodity producers Vale and Petrobras
, among the index's most liquid stocks and thus the
most susceptible to external pressures like the Fed
announcement, lost 2.06 percent and 3.53 percent respectively.
    * Mexico's IPC index fell 1.05 percent to its lowest
in nearly a year. Banking group Banorte dropped
2.51 percent, driving losses.
    * Chile's IPSA index shed 0.68 percent to close at
3,947.11 points, with a 0.74 percent drop in shares of retailer
Falabella.
    
    Latin America's key stock indexes at 2111 GMT:
    
 Stock indexes                              daily %  year-to-da
                         Latest              change        te %
                                                         change
 MSCI LatAm                    3,139.68        -3.5      -14.33
                                                     
 Brazil Bovespa               47,893.06       -3.18      -21.43
                                                     
 Mexico IPC                   39,044.95       -1.05      -10.66
                                                     
 Chile IPSA                    3,947.11       -0.68       -8.24
                                                     
 Chile IGPA                   19,628.64       -0.63       -6.84
                                                     
 Argentina MerVal              3,070.86        0.75        7.59
                                                     
 Colombia IGBC                13,289.34       -0.65        4.92
                                                     
 Peru IGRA                    16,561.75       -0.91      -19.72
                                                     
 Venezuela IBC               945,178.69       -0.46      100.49
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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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