MercoPress. South Atlantic News Agency

Latam markets follow on W. Street and Fed's expected cut

Major Latinamerican markets recovered strongly Tuesday as investors in the region and on Wall Street set aside worries about global recession to take part in a buying spree convinced that the Fed would announce further interest rate cuts on Wednesday.

US stocks soared with the Dow Jones Industrial Average (DJI) up a massive 889 points to close above the 9,000-points level. The S&P 500 Index ( SPX) gained nearly 11% thanks largely to a leap in financial stocks. In Sao Paulo, the Bovespa soared 13% to 33,386.65, slicing last week's total losses of 13.5%. The Brazilian currency appreciated 3.2% closing at 2.18 against the US dollar. The IPC, which tracks Mexico's 35 most actively traded shares, jumped 10.46% to 18,632.53. The gains swept away the bulk of last week's 16% slump. The Mexican peso also was up 3% against the US dollar, at 13.2. Chile's IPSA rose 1.8% Tuesday, to 2,389.85. The Chilean peso also recovered vis-à-vis the US dollar and closed at 676 following Monday's almost 690. So far this year the Chilean peso has devalued 26% against the US dollar. Colombia's IGBC index rose 3% to 6,657. Argentina's Merval closed up 6.6% to 893.98, led by a 15% leap in shares of steel tube maker Tenaris SA (TS), and a 14% rise in shares of electric utility Edenor (EDN). The Merval last week sank 27% after the government moved to nationalize pension funds. Fears of an Argentine government takeover of 30 billion US dollars in private pension funds may have put a ceiling on the surge but according to brokers investors were impressed with strong opening arguments by lawmakers who oppose the measure, which was presented Tuesday during the first day of Congressional debate of the bill.