Reuters logo
EMERGING MARKETS-Brazil stocks rise on central bank reassurances
June 25, 2013 / 10:07 PM / 4 years ago

EMERGING MARKETS-Brazil stocks rise on central bank reassurances

* China central bank signals liquidity risk 'under control'
    * Fed officials calm market fears over stimulus tapering
    * Brazil Bovespa gains 2.02 pct, Mexico IPC up 1.02 pct

    By Asher Levine and Lucas Iberico-Lozada
    SAO PAULO, June 25 (Reuters) - Latin American stocks gained
on Tuesday, helped by reassurances from Chinese and U.S. central
bank officials that they were not about to turn off the flow of
liquidity that has supported financial markets. 
    Bourses in Brazil, Chile and Mexico strengthened in unison
for the first time since the U.S. Federal Reserve's announcement
last week of a timetable for reining in its bond-buying program,
which will likely decrease investor appetite for risky assets. 
    Brazil's Bovespa gained 2.02 percent to close at
46,893, led by a 17.86 rise in shares of MMX Mineracao e
Metalicos SA, an iron ore mining company owned by
Brazilian billionaire Eike Batista.
    The rise came as China's central bank calmed investor
concerns over a potential banking crisis by signaling that
liquidity risk is "under control." 
    China, which is Brazil's top trading partner, is a key
market for Latin American raw material exports such as iron ore,
soybeans, petroleum and copper.
    The Bovespa's sharp rise came a day after the bourse fell to
its lowest level in four year, and it is still near lows not
seen since May 2009.  
    * Mexico's IPC index, led by a 7.58 percent rise in
shares of airport operator Grupo Aeroportuario Pacifico
, strengthened 1.02 percent to close at 3,7901.77, a
day after hitting a near one-year low. 
    * Chile's bourse gained 0.5 percent - its largest
expansion in nearly two weeks - to snap a four-day slide,
boosted by a 3.5 percent rise in shares of mining and steel firm
    * Latin American markets were also buoyed after two
officials of the Federal Reserve suggested on Monday that the
U.S. central bank's bond-buying program would not be cut back as
quickly as markets have priced in over recent days. 
    Latin America's key stock indexes at 2150 GMT:
 Stock indexes                  daily   YTD %
                                    %  change
                      Latest   change  
 MSCI LatAm           3,029.0    2.05  -20.24
 Brazil Bovespa       46,893.    2.02  -23.07
 Mexico IPC           37,901.    1.02  -13.28
 Chile IPSA           3,821.2     0.5  -11.16
 Chile IGPA           19,098.    0.48   -9.36
 Argentina MerVal     3,013.1   -0.26    5.57
 Colombia IGBC        12,418.   -1.04  -15.61
 Peru IGRA            15,328.    0.51  -25.69
 Venezuela IBC        976,458     0.4  107.12

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below